Indonesia’s Ministry of Energy and Mineral Resources (MEMR) has approved the plan of development (POD) for the Mako gas field at the Duyung production sharing contract (PSC), offshore Indonesia.
The Duyung PSC is 100% owned by West Natuna Exploration (WNEL). Conrad Petroleum owns WNEL with a 90% stake, with the remaining 10% interest held by Empyrean Energy.
Coro Energy signed an agreement to acquire a 15% direct interest in the Duyung PSC in the West Natuna Basin from WNEL in February 2019.
Empyrean Energy CEO Tom Kelly said: “The POD approval by the Ministry of Energy and Mineral Resources in Indonesia is another important milestone in progressing the Mako gas field towards production.
“Tenure has now been secured on the Duyung PSC out to 2037 which reduces risk and adds intrinsic value to the project.
“Importantly, the POD approval is also crucial to advancing negotiations of the heads of agreement into a gas sales agreement with the buyer in Singapore for the off-take of Mako gas.”
Covering about 890km² in the Riau Islands Province offshore Indonesia, the Duyung PSC is located close to the West Natuna Transportation System (WNTS) pipeline.
The pipeline supplies about 0.4 billion cubic feet of natural gas per day (Bcf/d) to Singapore.
Empyrean participated in the successful Mako South-1 exploration well in June 2017.
In January 2019, a resource audit by Gaffney Cline & Associates reported contingent 2C resources of 276 Bcf in the Mako field.