Conrad Asia Energy signs MoU with Indonesia’s Perusahaan Gas Negara over its gas discoveries in the Aceh PSCs
Meulaboh and Singkil gas discoveries have a combined NPV of US$88m, based on three of the four gas discoveries, producing to domestic markets
Conrad is acquiring 3D seismic data this year to identify additional potential targets and firm up existing resource estimates
Special Report: Conrad Asia Energy has signed a memorandum of understanding (MoU) with Perusahaan Gas Negara (PGN) to provide LNG and infrastructure from its two Aceh production sharing contracts (PSCs) offshore of Indonesia.
Conrad Asia Energy’s (ASX:CRD) Offshore Northwest Aceh (Meulaboh) and Offshore Southwest Aceh (Singkil) are estimated to contain 2C contingent resource of 214 billion cubic feet (Bcf) of sales gas (161 Bcf net attributable to Conrad) in three of the four shallow-water discovered gas accumulations in the two PSCs.
Planned 3D seismic this year should lead to increased confidence of additional resources in and around the existing discoveries.
The Meulobah and Singkil gas blocks off the coast of Indonesia. Pic supplied: (CRD)
LNG agreement
The discovered resources in the Meulaboh and Singkil blocks amount to a net present value (NPV) of $US88 million for CRD and, under the MoU with Perusahaan Gas Negara, a subsidiary of Indonesia’s national oil company PT Pertamina, both parties will collaborate in examining commercialisation options of the plays, with an initial focus on the existing shallow-water discoveries.
Indonesia has a stated objective of doubling gas production by 2030. The Aceh projects, combined with Conrad’s Mako gas project in the Natuna Sea, will help support the country’s objectives.
The two parties will seek to cooperate in the development and maintenance of possible small-scale LNG infrastructure, sales and broader project development.
Scaling up
To date, total prospective resources identified within the two PSCs amount to 15 trillion cubic feet (Tcf) of recoverable gas (11 Tcf attributable to Conrad).
Several multi-Tcf targets have been identified in the deep-water areas which are a longer-term focus and are attracting interest from larger upstream companies looking for impactful exploration opportunities. Recent major discoveries by other operators offshore Aceh has put this region back into regional exploration focus.
This year CRD plans to acquire 3D seismic data over the cluster of discovered resources in the Meulobah block, which currently only has sparse 2D seismic data that was acquired in the 1970s.
That 3D data may also assist in identifying new prospects in the vicinity of the cluster, where vintage 2D seismic supported close to 70% exploration success rates in the Miocene shallow-water carbonates.
CRD managing director Miltos Xynogalas says the MoU is an important step towards commercialisation of the discovered resources in the two PSCs and may become a key component of any future development plans.
“Conrad has been evaluating the offshore Aceh areas for more than five years and is excited about their potential,” Xynogalas says.
“There have been a host of major gas discoveries recently announced offshore Aceh which has brought the region back into international focus for gas exploration companies.
“Our PSCs lie within a proven biogenic gas region containing flow tested gas discoveries, as well as high impact deep-water exploratory potential.
“The shallow-water discoveries are of near-term interest for PGN and appear suitable for commercialisation via small-scale LNG plants—an already proven solution for gas deposits of this size elsewhere in Indonesia.”
This article was developed in collaboration with Conrad Asia Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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