Conrad Petroleum Ltd., Singapore, will develop Mako natural gas field offshore Indonesia under the “gross-split” production-sharing regime the country adopted in 2017 (OGJ Online, Jan. 20, 2017).
The Ministry of Energy and Mineral Resources approved a resubmitted development plan after Conrad and the government agreed to amend to Duyung production-sharing contract from cost-recovery to the gross-split scheme in January.
Conrad will be able to continue exploration of the 890-sq-km PSC area, which has water depths of 60-100 m in Riau Islands Province of the South China Sea.
Mako field gas occurs in Plio-Pleistocene Intra Muda sandstone encountered at about 1,700 ft in a northeast-southwest-trending anticline 47 km long and 16 km wide.
Four wells have penetrated the Intra Muda formation, the latest of which, Mako South-1, was cored and flow-tested.
Last November, an audit by Gaffney Cline & Associates assessed contingent resources at 276 bcf of gas.
Conrad, which has a 90% interest in the PSC, didn’t report development plans. Empyrean Energy PLC holds the other 10%.
