Empyrean Energy PLC (AIM:EME) announced the signing of a binding gas sale agreement (GSA) for the domestic portion of gas from the Mako field.
The deal is with Indonesian firm PT Perusahaan Gas Negara (PGN).
It is part of the company's strategy to develop the gas field which is located in the West Natuna Sea, Indonesia.
This comes as Indonesia aims to double its gas production, supporting the country's energy transition and economic growth.
The GSA is contingent on the construction of a pipeline connecting the West Natuna Sea to Batam.
The deal covers a total contracted gas volume of up to 122.77 trillion British Thermal Units – versus Mako’s estimated production rate of 35 billion British Thermal Units per day.
"This domestic GSA is a great step forward for the Mako gas field development,” Empyrean chief executive Tom Kelly said in a statement.
“We can also look forward to finalising the export GSA in the near term."
The remainder of Mako’s gas is targeted for sale to Singapore, where a separate GSA is currently under negotiation.
Empyrean Energy holds an 8.5% participating interest in the Duyung PSC, which hosts the Mako field.