Business
Key Terms Agreed for Long-Term Gas Sales Agreement
Key Terms Agreed for Long-Term Gas Sales Agreement.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n\nThis announcement contains inside information\n \nEmpyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil & Gas\n \nEmpyrean Energy plc\n \nKey Terms Agreed for Long-Term Gas Sales Agreement - Indonesian Regulator Gives the Green Light\n \n12 September 2023\n \nEmpyrean Energy plc (\"Empyrean\" or the \"Company\"), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that the operator of the Duyung PSC in Indonesia, Conrad Asia Energy Ltd (\"Conrad\") has announced that its wholly owned subsidiary, West Natuna Exploration Ltd (\"WNEL\") has signed non-binding key terms with Sembcorp Gas Pte Ltd, a Singapore based major gas buyer, that have been endorsed by SKK Migas - the petroleum upstream regulator in Indonesia (\"SKK Migas\"), for a first long-term gas sales agreement for the Mako gas field.\n \nHIGHLIGHTS\n \n· Conrad subsidiary, WNEL, operator of the Duyung PSC, has signed non-binding key terms (\"Terms Agreement\") with Sembcorp Gas Pte Ltd. for a long-term gas sales agreement for the Mako gas field (\"Mako\"), that have been endorsed by the Indonesian petroleum upstream regulator SKK Migas\n· The Terms Agreement for the supply of gas from the Natuna Sea underpins the commercial development of the Mako gas field providing secure and reliable gas that is less carbon intensive than LNG.\n· The key terms relate to approved gas production from Mako commencing in 2025 until the end of the Duyung PSC in 2037 for a total sales gas volume (100%) of c 293 Bcf with potential to increase to c 392 Bcf (100%). Gas sales will be priced against Brent oil.\n· The parties will now focus on finalising a definitive gas sales agreement in the coming months.\n· Mako is currently the largest undeveloped gas resource in the West Natuna Sea, lying in proximity to the West Natuna Transportation System.\n· Conrad and Empyrean discovered Mako in 2016, and since that time have delineated the resource through successful appraisal drilling. Mako partners received formal approval from the Government of Indonesia for the revised Plan of Development in late 2022.\n ...