Empyrean Energy PLC (AIM:EME) said the development plan for the Mako gas project has been approved by the Indonesian Ministry of Energy and Mineral Resources.
Approval has also been granted for all of the gas from Mako to be exported to Singapore until infrastructure to ship it to Indonesia has been built.
Empyrean holds an 8.5% interest in the Duyung PSC where Mako is situated, Coro Energy 15% and operator West Natuna (Conrad Asia) 76.5%.
Mako holds an estimated 297bn cubic feet net attributable to the consortium.
Conrad Asia expects Mako to be up and running by 2025 with production at up to 120mln cubic feet a day.
Tom Kelly, Empyrean’s chief executive, added: "This approval for the updated Plan of Development by the Indonesian Ministry of Energy and Mineral Resources is a major milestone on the pathway to developing this significant pipeline quality methane gas resource.
“It now allows the operator to re-focus resources on its stated objective of working with the Government of Indonesia to complete Gas Sales Agreement negotiations at the earliest opportunity."