Conrad Asia Energy has signed two production sharing contracts (PSCs) for offshore northwest and southwest of the Aceh province in Indonesia.

The firm will have a 100% operatorship stake in the two blocks, namely Offshore North West Aceh (Meulaboh), and Offshore South West Aceh (Singkil).

The Meulaboh and Singkil blocks, which have been offered under the first round of the Indonesia Petroleum Bidding Round (IPBR) 2022, are considered a ‘frontier’ by the Indonesian authorities.

For each of the PSCs, the total committed work programme is $15m. It will include geological studies for 2023, 500km² of 3D seismic acquisition for 2024, and well drilling work in 2025.

Conrad managing director and CEO Miltos Xynogalas said: “The award of these two PSCs is a transformational event for Conrad, as these blocks contain discoveries that significantly increase our resource base and offer the opportunity for Conrad to add several gas projects to its existing large Mako gas project.

“The deep-water areas potentially contain several multi-trillion cubic feet in size gas leads, with evidence of hydrocarbon accumulations from observed gas chimneys and seismic flat spots.

“The most prospective leads are in 1,000 metres of water which, by global standards, is not deep. Conrad has a 100% working interest in these blocks and will be seeking partners to participate in exploration efforts in these areas.”

The acquisition forms part of Conrad’s strategy to focus on offshore gas assets in Asia, with the potential to supply gas to the South East Asia markets.

Conrad is planning to undertake independent prospectivity reviews of the two PSCs’ deep-water exploration potential.

Conrad chairman Peter Botten said: “Indonesia is looking to double its gas production by 2030 and is actively encouraging the exploration and development of natural gas, where it recently announced it would need some $170bn in upstream investment by 2030.”