Conrad Asia Energy has announced the signing of a gas sales agreement (GSA) with PLN Energi Primer Indonesia (PLN EPI) to supply domestically all the natural gas produced from the Mako gas field.
PLN EPI is a subsidiary of Indonesian state-owned electric utility company PLN Persero.
Conrad Asia Energy holds a 91.5% interest in the Mako gas field and serves as the operator, while Empyrean holds an 8.5% interest.
Located in the Riau Islands Province in Indonesian waters, the field boasts 2C contingent resources of 376 billion cubic feet.
The GSA, signed on 16 July 2025, outlines a total contract quantity of 392 trillion British thermal units, extending through the current Duyung production sharing contract (PSC) period until January 2037.
It allows for the sale of up to 111 billion British thermal units per day, ensuring a steady supply of gas to meet domestic demand in Indonesia.
The pricing for the Mako gas will be linked to the Indonesian Crude Price (ICP), mirroring the economic conditions of previously approved prices for both domestic and export sales of Mako gas.
The gas from the Mako field will be sold at the ICP-linked price, deviating from the standard fixed domestic offtake price.
Conrad managing director and CEO Miltos Xynogalas said: “The GSA between the Mako joint venture and PLN EPI is a significant milestone both in the development of Conrad and in our progress to bringing the Mako Field into production. The signing of the GSA underpins the financial viability and crystallises the value of the Mako Field.
“The PLN EPI GSA will make a meaningful contribution to aligning Indonesia’s new energy policy to continue to secure cleaner energy. Mako is the first of many gas projects we aim to bring into commercial production from our existing portfolio of gas discoveries, which also include our Aceh gas resources where we hold four existing discoveries.”
The GSA terms with PLN EPI remain confidential, and PLN EPI will also be responsible for financing and constructing the pipeline from the West Natuna Gas line to Pemping Island, with no associated costs for Conrad.
Furthermore, the Indonesian Ministry of Energy and Mineral Resources has revoked its previous directive for the sale of Mako gas to Perusahaan Gas Negara and Sembcorp Gas, leading to the termination of the GSAs with these entities.
The new GSA is subject to customary conditions precedent.
The contract ensures the sale of plateau gas rates of approximately 111.9 million standard cubic feet, equivalent to the Mako gas field's entire 2C contingent resources, until the end of the Duyung PSC.
Empyrean CEO Tom Kelly said: “The GSA between the Mako joint venture and PLN EPI is a significant milestone for the Mako Gas Field. It is anticipated that this milestone will provide momentum to the project in a region of Asia that is experiencing strong demand for gas to meet energy demand growth.”
