This announcement contains
inside information
Empyrean
Energy Plc / Index: AIM / Epic: EME / Sector: Oil &
Gas
Empyrean Energy
plc
Ministerial Approval of Mako
Gas Price & Allocation
23 February 2024
Summary
Empyrean Energy plc ("Empyrean" or the "Company"), the oil and gas development
company with interests in China, Indonesia and the United States,
is pleased to advise that Conrad Asia Energy Ltd ("Conrad"), the
operator and 76.5% partner of the Mako Gas Field in the Duyung PSC,
Indonesia ("Mako"), today
announced that the gas price and volume allocation for Mako have
been approved by the Indonesian Minister of Energy and Natural
Resources (the "Minister").
This is a significant milestone that allows Conrad to finalise
fully termed Gas Sales Agreements ("GSA"). The Mako project will contribute
to Indonesia's target of doubling gas production by
2030.
Highlights
· SKK Migas, the Indonesian
upstream regulator, has informed Conrad that the Indonesian
Minister of Mining and Natural Resources ("Minister") has issued a
letter ("Allocation Letter") which approves the
volumes and
prices for gas exported and sold domestically from the Mako gas
field in the Natuna Sea.
· The Allocation Letter is a
key step in advancing the documentation for the sales of Mako
gas and access to the West Natuna Transport System ("WNTS"),
as it serves as the formal basis for reserving pipeline capacity
for the evacuation of Mako gas. As previously disclosed, Conrad is
continuing to work with the relevant parties and SKK Migas to
finalise the GSAs (with customary conditions
precedent).
Duyung PSC - Mako Gas Field
Empyrean holds an 8.5% non-operated
interest in the Duyung PSC which is located in the Riau Islands
Province, Indonesian waters in the West Natuna area, approximately
100 km to the north of Matak Island and about 400 km northeast of
Singapore.
In Q3 2023, Conrad signed a non-binding term
sheet with Sembcorp, a major Singapore energy company, which
outlines the key terms and serves as the basis for negotiating a
definitive GSA.
SKK Migas has informed Conrad that the Minister
issued the Allocation Letter authorising the volumes and prices of
Mako gas for export and domestic sale.
In line with its Domestic Market Obligation
("DMO") as set out in the
POD, Conrad has progressed negotiations of the sales of the
domestic portion of Mako gas to a domestic buyer. Subject to the
construction of the pipeline connecting the WNTS with Batam, Conrad
intend to sell Mako gas to a domestic buyer to satisfy its DMO
representing approximately 29.5% of Mako gas sales volumes. Conrad
and the domestic buyer are finalising a formal agreement to govern
these arrangements.
Empyrean CEO, Tom Kelly, stated: "This approval from the Minister of Energy and Natural
Resources in Indonesia of the gas pricing and allocation is
welcomed as an important milestone towards completing
definitive and binding Gas Sales Agreements for Mako gas. It
is very pleasing to see support from the Indonesian Government for
the Mako Gas Field that will help Indonesia transition to cleaner
fuels for energy."
For further information please
contact the following:
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Empyrean Energy plc
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Tom Kelly
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Tel: +61 6146 5325
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Cavendish Capital Markets Limited (Nominated Advisor and
Broker)
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Neil McDonald
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Tel: 0131 220 6939
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Pearl Kellie
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