Empyrean Energy PLC (AIM:EME) told investors it is delighted that a gas sales agreement has now been signed for the Mako gas field in the Natuna Sea, in Indonesia.
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, notably, 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, the company noted.
"Empyrean is delighted that agreement has been reached between the operator of Mako and a major gas utility and that the agreement has been endorsed by the Government of Indonesia's petroleum upstream regulator,” said Empyrean chief executive Tom Kelly.
“Focus will now be on converting this significant milestone into a binding gas sales agreement.”
Kelly added: “The existing terms will be welcomed by those parties currently participating in the sell down process to fund the development of the Mako gas field.
“The Mako gas field is the largest undeveloped gas discovery in the West Natuna Sea and is considered significant for energy security in the region and the transition from coal to cleaner sources of energy."
Empyrean holds an 8.5% interest in the Duyung PSC which hosts Mako, alongside partners WNEL and Coro Energy.