Conrad Petroleum gets approval for Mako development plan, offshore Indonesia

3/11/2019

SINGAPORE -- Conrad Petroleum Limited (Conrad or the Company), the operator of Duyung PSC, announced that its development plan for the Mako gas field (the POD), originally submitted in August 2018 and re-submitted under the gross split regime in January 2019, has been approved by Indonesia’s Ministry of Energy and Mineral Resources (MEMR).

Conrad also announced the conversion of the Duyung Production Sharing Contract (Duyung PSC) from the cost recovery scheme to the gross split scheme. The amended PSC was agreed by Conrad and the Government of Indonesia on Jan. 25, 2019.

In 2017, Indonesia’s MEMR introduced new regulations as it replaced the cost recovery scheme with the gross split regime. Since its introduction, the gross split scheme has considerably simplified the government approval processes and is expected to have a positive impact on the oil and gas industry.

The Duyung PSC covers approximately 890 km2 in the Riau Islands Province, situated in the offshore Indonesian waters of the South China Sea, and is proximal to the West Natuna Transportation System (WNTS), a gas pipeline to markets in Singapore. WNTS currently supplies approximately 0.4 Bcfd to Singapore. In June 2017, WNEL drilled the successful Mako South-1 exploration well. A November 2018 resource audit by Gaffney Cline & Associates reported contingent (2C) resources of 276 Bcf in Mako gas field.

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