Empyrean Energy PLC (AIM:EME) chief executive Tom Kelly cheered the new project milestone for the Mako field in Indonesia, where the project partners have now secured a Gas Sales Agreement (GSA) with Sembcorp Gas.
It covers the export portion of natural gas from the gas field.
The agreement marks a significant milestone in the commercialisation of the Mako field, which 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.
"This export GSA between Sembcorp, the Indonesian Government and the Mako Joint Venture partners marks the next significant milestone in the pathway from discovery of Mako towards development and production,” Tom Kelly said in a statement.
“Importantly, the combination of this export GSA with the DMO GSA means that all contingent resources at Mako are under binding contracts for sale.
“These GSA's underpin the commercial viability of the Mako project and its value.
“We anticipate that these GSA's will greatly assist parties interested in the Mako project to assess value and timelines with more clarity and certainty.
“We look forward to providing further updates on progress in due course".
Emyprean holds an 8.5% interest in the project, whilst AIM peer Coro Energy also has 15%.