Empyrean Energy, the London Stock Exchange-listed oil and gas development company with interests in China, Indonesia and the US, said the plan of development for an Indonesian project has been approved and will supply pipeline gas to Singapore in competition to LNG.
The Indonesian Ministry of Energy and Mineral Resources has approved the updated plan of development for the Mako gas project within the Duyung production sharing contract (PSC).
The Mako development is based on contingent Duyung PSC resources of 384 billion cubic feet gross and with 297 Bcf net attributable to the Duyung joint venture.
“The Indonesian government also approved the export of up to 100 percent of the gas production to Singapore,” said the Empyrean statement.
The operator is targeting production from the Mako gas project to commence in 2025 with up to 120 million cubic feet of gas per day.
The gas will supply Singapore through an existing pipeline in competition to the LNG cargoes delivered to the Jurong Island LNG import terminal in the Asian city state.
Empyrean holds an 8.5 percent interest in the Duyung PSC in which the Mako gas project is part.
Production plan
“Development of the Mako gas project will be in line with Indonesia's stated objective of doubling domestic gas production by 2030,” said Empyrean.
“The award of the revised plan represents a material event in progressing the Mako gas project which is currently the largest undeveloped gas field in South Natuna Sea,” added Empyrean, whose regional headquarters are in Australia,
The operator of the Duyung PSC is West Natuna Exploration Ltd, a subsidiary of Conrad Asia Energy with a 76.5 percent interest in the Duyung resources. Another 15 percent interest is held by Coro Energy Plc and the balance by Empyrean.
The company explained that at present, there was no infrastructure to transmit gas from the Mako field to domestic markets in Indonesia, and hence the plan for exports of production to Singapore, which is already connected to the West Natuna Gas Transportation System.
“The existing under-utilised gas pipeline to Singapore expedites the development of the Mako gas field from which gas is expected to be produced from 2025,” explained Empyrean.
Empyrean Chief Executive Tom Kelly said he was pleased with the approval of the updated development plan.
“It now allows the operator to re-focus resources on its stated objective of working with the Government of Indonesia to complete Gas Sales Agreement negotiations at the earliest opportunity,” added Kelly.
