Independent energy company Conrad Asia Energy has announced further delays and budget overruns for its Mako gas field development offshore Indonesia. The final investment decision (FID), which was expected in 2024, was not achieved, leading to a postponement of the project’s on-stream date.
Key Challenges in 2024
Conrad’s CEO, Miltos Xynogalas, cited two major factors impacting the project timeline:
- Gas Sales Agreements (GSAs): Finalizing GSAs has taken longer than anticipated.
- Regulatory Approvals: Securing necessary government approvals delayed progress further.
Despite these setbacks, Xynogalas emphasized that the company is entering 2025 with strong momentum and is in advanced exclusive discussions with a partner to support the Mako development.
Revised Plan for 2025
Conrad has committed to unveiling a revised timeline and capital expenditure (capex) plan for the Mako project in the coming months. The company aims to solidify agreements and partnerships to move the project forward.
About the Mako Gas Field
The Mako gas field, located offshore Indonesia, is one of Southeast Asia’s key undeveloped gas assets. It has faced delays and budget overruns in the past, but Conrad remains optimistic about its potential to deliver significant energy resources once operational.
Industry Outlook
While Conrad works to resolve project hurdles, the delays underscore the challenges independent operators face in navigating complex regulatory environments and securing commercial agreements in Southeast Asia’s competitive gas market.
