Conrad Asia Energy, an Asia-focused natural gas exploration and development company, has announced the signing of a binding gas sales agreement with Singapore-based Sembcorp Gas.
The deal pertains to the export of natural gas from the Mako gas field, marking a significant step forward in the project's commercialisation.
The Mako gas field, in which Conrad holds a 76.5% participating interest, is recognised as the largest undeveloped gas field in the West Natuna Sea.
With the GSAs now signed, all of Mako's current gas Contingent Resources have been committed to gas buyers, moving the project closer to a final investment decision targeted for the fourth quarter.
Miltos Xynogalas, managing director and CEO of Conrad Asia Energy, stated, "The GSA between the Mako joint venture, the Indonesian government and Sembcorp is the most significant event in the company's history as it has progressed Mako from an exploration concept in 2017 to a gas development project in 2024."
The GSA is set to run until January 2037, the end of the Duyung PSC, allowing for a sale of up to 76 billion British thermal units per day, equivalent to approximately 76.9 million standard cubic feet per day.
The agreement also includes a provision for an additional 35 Bbtud if a pipeline to the Indonesian domestic market is not constructed.
With natural gas playing an essential role in Asia's transition to cleaner energy, the completion of this agreement represents a pivotal moment for Conrad and its stakeholders.
The company continues its pursuit of developing gas resources across the region.