Conrad Asia Energy, an Asia-focused natural gas exploration and development company, and its wholly owned subsidiary West Natuna Exploration Limited ('WNEL') have signed an agreement with PT Nations Natuna Barat ('Nations'), a subsidiary of the Arsari Group, to farm into the development of the Mako gas field in the Duyung PSC and provide financing for 100% of project development costs and associated working capital.
Highlights
- Conrad, WNEL and Nations have signed definitive documentation for Nations to acquire a 75% non-operated Participating Interest (“PI”) in the Duyung PSC. Following the Transaction, WNEL will retain a 25% PI, which is expected to be fully carried through Mako commercial production (subject to Indonesia government approvals).
- Under the Transaction, Nations will fund its 75% portion of all future costs under the PSC, including the development of Mako, and has agreed to carry WNEL’s portion of estimated project costs through the first phase of Mako development. A Carry Loan Agreement (“CLA”) will govern the repayment of WNEL’s proportionate funding to Nations, with such repayments funded out of WNEL’s share of production revenues. Disbursements for long lead items have already commenced.
- Nations will pay WNEL a consideration which includes US$16 million for its 75% PI, to be settled in three tranches of US$5 million, US$4 million, and US$7 million, the first to be paid out on meeting certain conditions precedent expected by 1Q2026, the second tranche to be paid on completion of the Transaction expected by 3Q2026 and the third at the date of first commercial production expected in 4Q2027, respectively.
- WNEL is entitled to recover 75% of its agreed historical costs in the PSC after repayment of the CLA.
- Overall capital expenditures to bring the field to first gas are estimated to be US$320 million, in line with previous advice(1,2). The CLA provides sufficient funding for WNEL’s portion of development costs, including downpayments, contingencies for cost overruns, interest during construction, and working capital. First gas from Mako remains on track for delivery in the 4th quarter of calendar year 2027.
- As the operator of the Duyung PSC, WNEL, working closely with Nations, will continue to be responsible for the development and production of the Mako gas field, leveraging off WNEL’s intimate knowledge of the field.
- WNEL has previously announced the acquisition of Coro Energy Duyung (Singapore) Pte. Ltd.’s (“Coro”) 15% PI in Duyung, which is pending completion. On 17 November 2025, WNEL issued a withdrawal notice to Empyrean Energy Plc (“Empyrean”), with immediate effect under the joint operating agreement governing Duyung PSC (the “JOA”), in respect of cash calls unpaid since October 20233 (disputed by Empyrean), to effect the transfer under the JOA of Empyrean’s 8.5% PI (the “8.5% PI”) to WNEL as the sole non-defaulting party. WNEL first issued a default notice to Empyrean in November 2024. When WNEL completes the acquisition each of Coro's and Empyrean's PIs in the Duyung PSC, it will hold a 100% PI under the JOA, immediately prior to completion of the Transaction.
- Transaction completion is expected prior to a long-stop date during Q3 2026, unless otherwise agreed.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
'We are delighted to be partnering with an Indonesian company of Nations stature on the Mako project. Nations affiliates have engaged in international upstream oil and gas activities for some two decades, and represent an excellent partner for this project. Having such a quality domestic partner whose interests are aligned with ours is a tremendous outcome for the development of the project, for Conrad and for the Indonesian gas industry. The quantum of funds secured by our team to bring Mako into production is transformational for a company our size. WNEL retains a 25% PI in the project as well as operatorship, reflecting our deep history and knowledge of the asset and our broader capabilities and ambitions and the confidence of our partner.
This transaction represents an inflection point in Conrad’s eight-year history with the project, during which WNEL discovered, appraised, obtained a Plan of Development over Mako and delivered a gas sales agreement with Indonesia’s largest power company. We are excited to take the development to the next stage and contribute to Indonesia’s much-needed domestic energy supply.
The development of the Mako gas resource will establish Conrad as a developer and producer of gas where it can leverage its operating capabilities into the development of its other discovered resources and deliver a visible growth profile through the end of the decade and beyond. Conrad’s two-pronged strategy remains unchanged: to bring Mako successfully into production, and in parallel, to focus on the multiple exploration, appraisal, and development opportunities in its two 100%-owned Aceh PSCs. Conrad anticipates moving to a Plan of Development (POD) for the existing shallow water discoveries in Aceh.'
- P50 Capex estimate excluding any potential downpayment for the planned leased Mobile Production Unit (“MOPU”).
- ASX Release, Annual Report 2025, for the Year Ended 31 December 2024, 31 March 2025.
- ASX Release, CRD Quarterly Activities Appendix 5B Cash Flow Report, 27 October 2025.
Source: Conrad Asia Energy
