Coro Energy PLC (AIM:CORO)'s Mako project has secured a Gas Sales Agreement (GSA) with Sembcorp Gas for the export portion of natural gas from the gas field, located offshore Indonesia.
The agreement is seen as a significant milestone in the commercialisation of the Mako field, which notably is the largest undeveloped gas field in the West Natuna Sea.
Specifically, the GSA is an important step toward a Final Investment Decision (FID) for the Mako project.
The agreement envisages the sale of up to 76.9 million standard cubic feet per day (mmscfd) of natural gas, plus upside if a tie-in pipeline to the Indonesian domestic market is not constructed.
Specific commercial terms of the agreement remain confidential and are subject to the approval of Indonesia's Minister of Energy and Natural Resources.
A formal signing ceremony is expected to take place soon.
Coro Energy holds a 15% interest in the project, whilst AIM peer Empyrean also has an 8.5% stake.