Conrad Asia Energy, an Asia-focused natural gas exploration and development company, has provided an overview of activities for the quarter ending 30 September 2025.
- Gas Sales Agreement ('GSA') for the Mako Gas Field signed with PT PLN Energi Primer Indonesia ('PLN EPI') a wholly owned subsidiary of PLN, Indonesia’s largest power company.
- The gas will be sold domestically for a total contact quantity of 392 trillion British thermal units ('TBtu') for a period until January 2037 and allows for the sale of up to 111 billion British thermal units per day ('Bbtud').
- Mako gas price will be linked to the Indonesian Crude Price ('ICP'), an oil price index similar to Brent. The resulting pricing mechanism will be similar to the mix of prices previously approved for Mako export and domestic gas sales.
- Conrad is engaged in discussions with a preferred candidate for the farm-down of some of its Participating Interest ('PI') and related financing of the Duyung Production Sharing Contract ('PSC') (Mako Field). Conrad is now focused on assisting the preferred candidate and lenders with due diligence with the aim of concluding an agreement this year.
- An internal prospectivity assessment of the shallow-water areas of ONWA and OSWA was completed during the quarter where unrisked P50 Prospective Resources (100%) are now estimated to be 546 billion cubic feet (“Bcf“, 394 Bcf net attributable to Conrad) held in 11 prospects and leads1 (see Table 1). This volume is in addition to the previously reported Contingent Resources in known discoveries2 (see Table 2) and the unrisked P50 Prospective Resources of 15 trillion cubic feet (“Tcf“) (11 Tcf net attributable to Conrad) previously reported in the deeper water areas in the ONWA and OSWA PSCs3 . This shallow-water Prospective Resource is substantive.
- The circa 500 square kilometre seismic acquisition programme in ONWA is expected to commence in February 2026 and will focus on a shallow-water (50-80 metres) area that includes the cluster of three gas discoveries and six leads (see Figures 1 & 2, Table 1), where previous exploratory success rates have been close to 70%.
- Conrad is in discussions with potential equity partners in relation to a minority, non-operated farm-in into both of its Aceh assets
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
'The signing of a binding GSA for the Mako gas field with a wholly owned subsidiary of Indonesia’s largest energy company PLN is major step in progressing the development of Mako. PLN owns 7000 power stations and some 90 million customers throughout Indonesia and is the ideal buyer for our gas. With the signing of the GSA, Conrad can now progress its farm down process with much clearer visibility and is aiming to complete these negotiations by end 2025. The GSA and subsequent farm down of Mako both underpins the financial viability and crystallises the value of the Mako Field, and in so doing, will evolve Conrad into a full-cycle upstream company
In Aceh, the shallow-water near shore area of Aceh represents a major opportunity for Conrad to commercialise a substantive resource. The upcoming 3D seismic is the first step towards this objective. Updated data acquisition using modern techniques is expected to better define the existing discoveries, de-risk existing prospectivity and identify new exploration potential. The resource update highlights the potential within the shallow-water of both PSCs and builds a more material gas resource for future project development.
Conrad has a significant portfolio of gas projects in one of the world’s fastest growing gas consumption regions. In addition to the shallow-water gas discoveries mentioned above and the Mako gas project in West Natuna, we are building a growing inventory of Prospective and Contingent Resources in our ONWA & OSWA PSCs. This represents a large opportunity set which in a success case will have a material valuation impact.
The continued and growing importance of natural gas to Asian economies, especially in the context of the energy transition, cannot be overstated and Conrad is continuing to build and progress its portfolio towards becoming a substantial gas producer in the region.'
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Source: Conrad Asia Energy
