Coro Energy PLC (AIM:CORO) cheered “a critical step” towards the development of the Mako gas field in the Natuna Sea, Indonesia, with the agreement of a gas sales agreement.
Project operator WNEL has now signed a non-binding term sheet with Sembcorp Gas for a long-term gas sales agreement for the Mako gas field, and, significantly, Coro noted that the agreement has been endorsed by SKK Migas, the Indonesian petroleum upstream regulator.
It envisages the sale of gas from Mako up until 2037, with a total anticipated volume of 293 billion cubic feet of gas – potentially rising to 392 billion.
The price will be benchmarked against the Brent crude price, it noted.
"I am delighted to have now secured the GSA Heads at the Duyung PSC, approved by the buyer and, critically, endorsed by the Indonesian authorities,” said Coro chair James Parsons.
“This is a critical step in the commercial de-risking of our project, positioning us perfectly for bids from the operator's farm-out process, which we expect to play out shortly."
Coro has a 15% participating interest in the Duyung PSC which hosts Mako.