Daily Newsletter

04 March 2024

Daily Newsletter

04 March 2024

Conrad signs gas supply and development MOU for PSCs in Indonesia 

The agreement covers the Offshore North West Aceh (ONWA) (Meulaboh) and Offshore South West Aceh (OSWA) (Singkil) blocks. 

Shivam Mishra March 04 2024

Conrad Asia Energy has signed a memorandum of understanding (MOU) with Perusahaan Gas Negara (PGN), a subsidiary of Indonesia's national oil company, Pertamina, to collaborate on gas supply and infrastructure development projects.  

This partnership focuses on exploiting gas resources from Conrad's two production sharing contracts (PSCs) in offshore Aceh, Indonesia.  

The agreement includes a joint study to explore commercialisation options for the gas resources within the ONWA (Meulaboh) and OSWA (Singkil) blocks. 

Initially, the companies will focus on the existing shallow-water discoveries within the two PSCs.  

The parties aim to develop and maintain potential small-scale liquified natural gas (LNG) infrastructure and manage the sales of LNG.  

The MOU extends to broader cooperation related to the two blocks, where Conrad holds a 100% operated interest.  

Awarded in January 2023, the ONWA and OSWA blocks span approximately 20,000km² and have a 30-year tenure. 

Competent persons reports estimate a gross 2C Contingent Resource of 214 billion cubic feet (bcf) of sales gas, with 161bcf net attributable to Conrad, across three of the four shallow-water discovered gas accumulations in the two PSCs.  

Conrad plans to acquire 3D seismic data over the ONWA discovered resources cluster this year to refine resource estimates and potentially identify new prospects, building on the success rates of vintage 2D seismic in the region. 

The total prospective resources identified within the two PSCs are estimated at 15 trillion cubic feet (tcf) of recoverable gas, with 11tcf net attributable to Conrad.  

Conrad managing director and CEO Miltos Xynogalas commented: “The shallow-water discoveries are of near-term interest for PGN and appear suitable for commercialisation via small-scale LNG plants – an already proven solution for gas deposits of this size elsewhere in Indonesia. 

“This outcome and our collaboration with the major national gas buyer highlights the importance of the Aceh resources in Conrad’s broader portfolio and underscores our commitment to support Indonesia’s energy needs. This MoU with PGN is an important milestone towards the maturation of the discovered resources in the Aceh PSCs." 

In September 2023, Conrad signed a non-binding terms agreement with Singapore’s Sembcorp Gas for a long-term gas supply deal from the Mako gas field, which is part of the Duyung PSC in the Natuna Sea.  

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