Conrad Asia Energy has signed two Production Sharing Contracts (PSCs) for offshore exploration blocks located northwest and southwest of the Aceh Province, Indonesia.
Conrad signs deal for two new production blocks offshore Indonesia. (Credit: Maria Lupan on Unsplash)
Under the terms of the PSCs, the Indonesia-based gas explorer will obtain a 100% participating stake in the blocks Offshore North West Aceh, and Offshore South West Aceh.
The Offshore North West Aceh block (Meulaboh) covers a total of 9,182km² and comprises the Meulaboh-1 and Meulaboh East-1 gas discovery wells.
The Offshore South West Aceh block (Singkil) spans a 10,700km² area and contains the Singkel-1 gas accumulation.
Conrad said that the acquisition is in line with its strategy of developing assets with the potential to supply gas to the rapidly growing South East Asia markets.
Conrad managing director and chief executive officer Miltos Xynogalas said: “The award of these two PSCs is a transformational event for Conrad as these blocks contain discoveries that significantly increase our resource base and offer the opportunity for Conrad to add several gas projects to its existing large Mako gas project.
“Conrad’s initial scoping study of gas markets in the region has been positive and we are optimistic of commercialising these discoveries and delivering a portfolio of growth opportunities to our shareholders.
“There is significant upside for Conrad in the exploratory opportunities that exist in both the shallow- and the deep-water areas, where we have already identified a host of high-impact gas plays.”
In November 2018, Conrad was granted two Joint Study Areas (JSAs) located offshore northwest and southwest of the Aceh Province.
Meulaboh and Singkil were offered as part of the first licencing round in the Indonesia Petroleum Bidding Round (IPBR) 2022.
In November last year, Indonesia’s Ministry of Energy and Mines announced Conrad as the winning bidder for both blocks.
The company is committed to carrying out a work programme entailing $15m for each PSC.
The work programme at the PSCs will include geological studies for 2023, 500km2 of 3D seismic acquisition for 2024 and the drilling of a well for 2025.
Conrad has initiated third-party competent persons reports for the known gas discoveries in both blocks, which will contain Contingent Resource estimates and valuations.
Furthermore, the company intends to commence independent prospectivity reviews of the deep-water exploration potential of the PSCs.
Conrad chairman Peter Botten said: “Indonesia is looking to double its gas production by 2030 and is actively encouraging the exploration and development of natural gas where it recently announced it would need some $170 billion in upstream investment by 2030.
“Conrad is delighted to be an active participant in this important initiative to secure vital energy supplies in this growing economy.”
