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JAKARTA - Empyrean Energy PLC (AIM:EME) announced Thursday that a Gas Sale Agreement (GSA) has been signed between Conrad Asia Energy Ltd, operator of the Mako Gas Field, and PLN EPI, a subsidiary of Indonesia’s state-owned electric utility company.
The binding agreement, signed on July 16, covers the sale of 392 thousand billion British thermal units (TBtu) of natural gas from the Mako field for domestic supply in Indonesia. The contract extends until January 2037, covering the current Duyung Production Sharing Contract period, and allows for the sale of up to 111 billion British thermal units per day.
Under the agreement, the gas price will be linked to the Indonesian Crude Price, an oil price index similar to Brent. The pricing mechanism is expected to be economically similar to previously approved prices for Mako export and domestic gas sales.
PLN EPI will finance and build the pipeline connecting the main West Natuna Gas line to Pemping Island and onward to Batam, with Conrad bearing no costs for this construction.
Following this agreement, Indonesia’s Ministry of Energy and Mineral Resources has revoked its earlier directive to sell Mako gas to PT Perusahaan Gas Negara Tbk and Sembcorp Gas Pte Ltd, terminating those GSAs.
Empyrean Energy holds an 8.5% interest in the Mako Gas Field, while Conrad Asia Energy Ltd holds the remaining 91.5%. The Mako field, located in Indonesian waters approximately 400 km northeast of Singapore, contains 2C Contingent Resources of 376 billion cubic feet.
The announcement, based on a company press release, noted that the GSA is subject to customary conditions precedent.
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