Conrad Asia Energy, an Asia-focused natural gas exploration and development company, has provided an overview of activities for the quarter ending 31 December 2024.
- Gas Sales Agreements (GSAs) Finalised. All Mako gas 2C Contingent Resources under the Duyung Production Sharing Contract (“PSC”) are fully allocated to buyers in Singapore and Indonesia.
- Regulatory Approvals in Progress. The Sembcorp GSA remains subject to approval by the Indonesian Government. Following a change in government and the installation of a new team at SKK Migas (the relevant government regulator), discussions are ongoing to conclude all approvals in line with any new energy priorities that may be set by the incoming administration.
- Mako Project. Refinement/refreshment of schedule and costs continued. The Company commenced inspection work for rigs for the mobile offshore production unit (“MOPU”) fabrication, commenced detailed engineering for the compressor package, further matured shorebase location and operational planning, and completed analysis of project insurance bids.
- PSC Farm-Down Advancements. Conrad is engaged in exclusive discussions with a preferred partner for the farm-down of the Duyung PSC. In conjunction with this farm down, negotiations with multiple financial institutions are taking place with indicative proposals received and due diligence ongoing to fund the debt financing component of the project.
- Aceh Small-Scale LNG Screening Study Completed. A high-level screening study confirmed the technical and commercial feasibility of a small-scale LNG plant for offshore Aceh gas. The study confirmed Aceh is advantaged by the near-shore shallow water location and the almost pure methane content of the gas.
- Expanded Market Opportunities. Small-scale LNG commercialisation is one of many opportunities in the Aceh region. Strong local/regional demand exists, including interest from mining companies requiring the processing of products.
- 3D Seismic Data Acquisition. Preparations are underway to acquire up to 500 square kilometres of modern 3D seismic data across the Aceh PSCs in the coming months. This initiative aims to enhance the definition of existing discoveries and identify low-risk drilling opportunities. Discussions with potential partners for both shallow and deep-water areas continue.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
'Whilst we are disappointed that a Final Investment Decision (“FID”) for the Mako Project was not achieved by the end of 2024, finalising GSAs and securing regulatory approvals have both impacted the timeline. However, momentum heading into 2025 is strong, and we are in advanced exclusive discussions with a partner for Mako. In conjunction with this farm down, negotiations are progressing with project financing. We are also dealing with interested parties in Aceh and hope to conclude a deal in the coming months.
The market conditions for gas in Asia are particularly favourable, and we have seen significant interest in our projects from gas buyers, potential partners, and financiers. Beyond the Mako Project, our discovered gas resources and exploratory potential in Aceh are drawing considerable attention with numerous commercialisation options now being evaluated.
Conrad has five gas discoveries in its portfolio with total recoverable resources in excess of 500 billion cubic feet (c 340 “Bcf” net attributable to Conrad(1) and 15 trillion cubic feet (“Tcf”) of prospective resources on a gross basis (c 11 Tcf P50 unrisked net attributable to Conrad (2). The company is committed to continue building a substantial gas portfolio and capitalising on the numerous commercial opportunities across our assets aligning with the region’s robust energy demand growth and the ongoing transition from coal to gas.'
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Source: Conrad Energy
