Conrad Asia Energy and its majority-owned subsidiary, West Natuna Exploration, have approved the final investment decision (FID) for the Mako Gas Project offshore Indonesia.
This decision moves the project into full development, with first gas production targeted for the fourth quarter of 2027 (Q4 2027). The project is located within the Duyung production sharing contract (PSC), operated by West Natuna Exploration in partnership with Arsari Group subsidiary PT Nations Natuna Barat and Empyrean Energy.
Estimated total capital expenditure to reach first gas stands at approximately $320m (S$407.9m) on a 100% basis. Full funding for the project has been covered for all allocated project costs, including a significant allowance for contingencies.
The FID is expected to materially de-risk the project, building on successful appraisal drilling and flow testing, verified reservoir performance, a completed gas processing design and the planned tie-in to the West Natuna Transportation System.
The project holds a binding gas sales agreement (GSA) that provides government-backed revenue through January 2037 for up to 111 billion British thermal units per day (bbtu/d) and covers all contingent resources attributed to the Mako field. This arrangement ensures revenue predictability once production begins.
Conrad managing director and CEO Miltos Xynogalas said: “The Mako FID has transitioned Conrad from a speculative exploration/appraisal company to a fully contracted gas development and future production company with a defined and funded capital programme and a clear path to production.
“With contracted gas sales in place, funding secured and first gas targeted, the company believes the project provides a clear pathway to Conrad becoming an energy producer in the fastest-growing energy consumption region in the world.
"Mako represents a disciplined and substantially de-risked entry into South East Asian gas growth, which we aim to augment with our Aceh gas accumulations in due course.”
The Mako gas field is situated within the West Natuna Basin at water depths between 60m and 100m. The Duyung PSC spans 1,145km² and is located roughly 20km from existing gas export and oil production infrastructure. The West Natuna Basin is recognised as one of Asia’s significant hydrocarbon regions.
