Millions committed to bring Southeast Asian gas field to life

March 3, 2026, by Melisa Cavcic

West Natuna Exploration Limited (WNEL), a majority-owned subsidiary of Singapore-headquartered natural gas player Conrad Asia Energy, has taken a step to secure future gas supply by greenlighting a final investment decision (FID) for a natural gas field in the West Natuna Sea off the coast of Indonesia, Southeast Asia.

An offshore platform and a vessel next to it at sunset — Illustration; Source: Conrad Asia Energy

West Natuna Exploration, as the operator of the Duyung production sharing contract (PSC) with a 76.5% stake, has approved the FID for the Mako gas project, which enables the firm and its partners, Empyrean Energy ( 8.5%) and Coro Energy (15%), to proceed with the commercial development of the project in the Riau Islands Province of Indonesia.

This project will be developed in cooperation with the Indonesian government, WNEL as operator, and PT Nations Natuna Barat (NNB), an entity under Arsari Group, which is expected to become the majority participating interest holder in the Duyung PSC, following a farm-out deal from November 2025.

Miltos Xynogalas, Conrad Managing Director and Chief Executive Officer, commented: “The Mako FID has transitioned Conrad from a speculative exploration/appraisal company to a fully contracted gas development and future production company with a defined and funded capital programme and a clear path to production.

“With contracted gas sales in place, funding secured and first gas targeted, the company believes the project provides a clear pathway to Conrad becoming an energy producer in the fastest-growing energy consumption region in the world. Mako represents a disciplined and substantially de-risked entry into South-East Asian gas growth, which we aim to augment with our Aceh gas accumulations in due course.”

Located approximately 100 kilometers to the north of Matak Island and 400 kilometers northeast of Batam, the Mako development is described to have a proven reservoir, infrastructure access, and a clear timeline. The FID is perceived to mark a transition to development and cash flow.

Xynogalasadded: “The project has been systematically derisked across subsurface, engineering, permitting and funding, positioning Conrad to progress confidently into construction. It is fully funded, including substantial contingencies, at a time when access to development capital for smaller companies remains challenging.

“The funding structure preserves Conrad’s exposure to long-term cash flows while materially reducing medium-term balance sheet pressure and equity dilution risk. Our immediate focus is the safe and efficient award and execution of key construction and drilling contracts.”

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The operator anticipates a rapid ramp-up in project development activities, with first gas targeted for 4Q 2027. The overall capital expenditures to bring the field to first gas are estimated to be $320 million, with WNEL’s 25% share amounting to $80 million. The firm has committed to project contracts in excess of $110 million (100%).

Xynogalas continued: “I am particularly proud of our entire team for staying focused through the organic transition from explorer to producer, having discovered Mako, successfully appraised it, certified the resources, delivered an approved plan of development, contracted the entire gas resource base to the largest energy company in Indonesia and then finally securing the financing to bring the field into production whilst preserving our capital base.”

The firm underlines that full funding has been secured for all budgeted project costs, including a substantial contingency allowance. The project began with the 2017 Mako South-1 gas discovery and subsequent appraisal wells drilled in 2019.

All wells were successfully flow-tested, with results supporting the development plan, the design of the gas processing facilities and the tie-in to the West Natuna Transportation System (WNTS). The project is described as having a fully contracted revenue, with long-term government-backed gas sales to 2037.

Gaz Bisht, CEO & Technical Director, commented: “The approval of the final investment decision for Mako marks a defining milestone for Empyrean and for the Duyung joint venture. It transitions the Project from appraisal into full development, with contracted gas sales, secured funding at the joint venture level and a clear path toward first gas in 4Q 2027.

“It is particularly satisfying that Empyrean has been involved in the full lifecycle of the Mako gas field – from the successful exploration well drilled in 2017, through two appraisal wells, to finalising the plan of development and for Empyrean shareholders, this represents a material shift in risk profile. Mako has moved from a resource opportunity to a funded development project with long-term, government-backed gas sales extending to 2037.”

The conclusion of a gas sales arrangement (GSA) and progress towards finalization of gas transportation arrangements with the WNTS JV were seen as critical steps on the path to FID.

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Conrad and PT PLN Energi Primer Indonesia (PLN EPI) signed a binding GSA for the sale of up to 111 billion British thermal units per day (Bbtud), which covers the full 2C contingent resources attributable to the field until January 2037, the current end of the Duyung PSC.

Nations Petroleum Natuna Barat will fund its 75% portion of all future costs for the PSC, including the development of Mako, and has agreed to carry WNEL’s portion of the estimated project costs through the first phase of Mako development.

A carry loan agreement (CLA) governs the repayment of WNEL’s proportionate funding to NNB, with such repayments funded out of the share of production.