All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

The Indonesian Ministry of Energy and Mineral Resources (MEMR) has issued a directive to Conrad Asia Energy, the operator of the Mako Gas field offshore Indonesia, stating that all gas produced from the field would be sold to state-owned PT PLN Energi Primer Indonesia (PLN) due to strong domestic demand for gas in Indonesia.

As a result of the MEMR directive, Conrad is working to finalize a Gas Sales Agreement (GSA) with PLN, which is a subsidiary of Indonesian state-owned electric utility company PT Perusahaan Listrik Negara (Persero).

The Mako Joint Venture partners include Conrad with 76.5% operating stake, Coro Energy with 15% working interest, and Empyrean Energy with 8.5%.

The Mako gas price will be linked to the Indonesian Crude Price (ICP), which is akin to Brent oil-linked liquified natural gas (LNG) pricing. This structure will be economically equivalent to the pricing previously approved for Mako gas to be sold both domestically and for export, thereby underpinning the value of gas from Mako.

“With a new government in Indonesia committed to providing gas powered electricity under its New Energy Plan,