Conrad to sell Mako gas to Indonesia's Pertamina

Australia-listed gas exploration firm Conrad Asia Energy plans a sales and purchase agreement with Indonesia's state-owned Pertamina, covering the domestic share of gas from the Mako field in the West Natuna Sea offshore Indonesia.

Conrad and Perusahaan Gas Negara (PGN), the gas subsidiary of Pertamina, have committed to a fully termed gas sales agreement (GSA) by 31 May covering 29.5pc of Mako's volumes, Conrad said on 28 March.

Mako is estimated to contain contingent resources of 413bn ft³ (11.7bn m³) of sales gas, of which 215bn ft³ is net to Conrad. The GSA is subject to a pipeline to be built, linking the West Natuna transportation system to the domestic gas market at the Indonesian port of Batam.

The remainder of Mako's sales gas will be sold to Singapore. A term sheet was signed with Singapore energy firm Sembcorp Industries during July-September last year for a GSA to begin at the project's start-up and run until 2037, totalling around 293bn ft³ and potentially increasing to 392bn ft³. The firm is aiming to make a final investment decision on Mako by mid-year.

Conrad holds a 76.5pc operating interest in the Duyung production-sharing contract (PSC) about 400km northeast of Singapore, which includes Mako.

Conrad and PGN last month announced they would carry out a [joint study on commercialising gas resources offshore northwest Aceh for the Meulaboh and Singkil PSCs, comprising estimated contingent resources of 214bn ft³ of sales gas.

By Tom Major