Conrad Asia Energy Signs Landmark Gas Sales Agreement for Mako Gas Field with PLN EPI

Jane Morgan Management

17 July 2025 – Conrad Asia Energy Ltd (ASX:CRD), an Asia-focused natural gas exploration and development company, is pleased to announce the execution of a binding Gas Sales Agreement (GSA) with PT PLN Energi Primer Indonesia (PLN EPI), a subsidiary of Indonesia’s state-owned electric utility, PT Perusahaan Listrik Negara (PLN). The GSA secures domestic offtake of the entire gas volume from Conrad’s flagship Mako Gas Field in Indonesia.

Highlights:

• Binding GSA signed with PLN EPI for 100% of Mako gas production through to January 2037

• Contract covers a total quantity of 392 TBtu, with a daily supply allowance of up to 111 Bbtud

• Gas price will be oil-linked, tied to the Indonesian Crude Price (ICP), rather than a fixed domestic price

• PLN EPI to fund and construct key pipeline infrastructure—no cost to Conrad

• Indonesian government rescinds previous domestic and export allocation directives for Mako gas

• GSA provides key commercial foundation for Final Investment Decision (FID) and supports ongoing farm-out negotiations

The GSA represents a significant milestone in bringing the Mako Gas Field into production. It provides commercial clarity and financial viability for the project, with all gas to be sold under oil-linked pricing rather than the traditional fixed domestic price structure. Importantly, PLN EPI has committed to financing and constructing the connecting pipeline infrastructure to the West Natuna Gas line and Batam Island—removing a critical capital hurdle for Conrad.

Conrad Managing Director and CEO, Miltos Xynogalas, said: “The GSA between the Mako Joint Venture and PLN EPI is a significant milestone both in the development of Conrad and in our progress to bringing the Mako Field into production. The signing of the GSA underpins the financial viability and crystallises the value of the Mako Field. 

For Conrad, this is an important step in building its gas business in Asia. Conrad has worked closely and effectively with PLN to conclude a formal GSA promptly following the Directive from the MEMR to sell all gas from Mako into the Indonesian domestic market. The island of Batam is experiencing strong energy demand growth fuelled by power demand from data centres and Mako is ideally placed to supply energy to that growing market. 

Oil-linked prices for domestic gas contracts in Indonesia have been uncommon. Approval of such a structure for Mako demonstrates the willingness of the Government of Indonesia to secure gas for local consumption whilst ensuring that the producer is not economically disadvantaged. Indonesia is the fourth most populous country in the world and amongst the fastest growing economies in the world. The PLN EPI GSA will make a meaningful contribution to aligning Indonesia’s new energy policy to continue to secure cleaner energy. 

Mako is the first of many gas projects we aim to bring into commercial production from our existing portfolio of gas discoveries, which also include our Aceh gas resources where we hold four existing discoveries. Asia has the fastest gas consumption growth in the world and continues to progress on its energy transition path away from coal. We are extremely proud to participate in and support Indonesia’s ever-growing exploitation of its natural gas resources. The resultant strong gas demand in Indonesia underpins the tangible value of our discovered resources and provides a compelling investment thesis for Conrad.” 

The GSA follows the Indonesian Ministry of Energy and Mineral Resources’ recent revocation of its previous directive allocating Mako gas to PGN and Sembcorp. Those legacy agreements have now been terminated, clearing the path for this domestic-focused supply arrangement.

Conrad holds a 76.5% operating interest in the Duyung Production Sharing Contract (PSC), which houses the Mako Gas Field. This interest is set to increase to 91.5% following completion of the Coro Energy divestment. The field contains 376 Bcf of 2C Contingent Resources (100%), of which 192 Bcf are net attributable to Conrad (231 Bcf post-Coro transfer).

About Conrad & Projects 

Conrad is an Asia-focused natural gas exploration and production company concentrated on the shallow waters offshore Indonesia, and via its wholly owned subsidiaries, is the holder ofseveral operated tenements in the form of Production Sharing Contracts. The Company’s flagship project is the Mako Gas Field located in the Natuna Sea in the shallow offshore waters of Indonesia. The Mako gas field is one of the largest gas discoveries in the region. 

The Company specialises in the identification and acquisition of undervalued, overlooked, and/or technically misunderstood gas assets, and has developed expertise in maturing such assets through subsurface technical work, appraisal drilling and an innovative approach to low-cost field development. 

The Board and management have a proven track record of value creation and deep industry experience with oil majors, midcap E&P and the upstream investment community, together with a successful track record of bringing exploration and development projects into production, with Peter Botten the founder and Chairman of Oil Search adding enormous depth and experience as Chairman of Conrad.

Jane Morgan 
Jane Morgan Management
Investor & Media Relations
[email protected]