Empyrean Energy (EME) has noted that Conrad Asia Energy and its majority-owned subsidiary, West Natuna Exploration, as operator of the Duyung Production Sharing Contract (PSC), have approved the Final Investment Decision (FID) for the Mako Gas Project, offshore Indonesia. Empyrean holds a participating interest in the Duyung PSC.
The FID moves the Mako Gas Project into full development, with first gas targeted for the fourth quarter of 2027. As a result, the decision materially advances Empyrean’s pathway towards future cash flow generation.
Total capital expenditure to first gas is estimated at about US$320 million on a 100% basis. Meanwhile, the project is fully funded at joint venture level, including contingency allowances, which significantly reduces funding risk as development activity accelerates.
The FID follows successful appraisal drilling and flow testing, confirmation of reservoir performance, finalisation of gas processing design and a planned tie-in to the West Natuna Transportation System. The project benefits from long-term, government-backed contracted revenues through January 2037 under a binding Gas Sales Agreement covering up to 111 billion BTU per day and the full 2C contingent resources attributable to the field.
Empyrean Energy’s CEO and Technical Director Gaz Bisht said: “The approval of the Final Investment Decision for Mako marks a defining milestone for Empyrean and for the Duyung joint venture. It transitions the Project from appraisal into full development, with contracted gas sales, secured funding at the joint venture level and a clear path toward first gas in 4Q 2027.
“Our focus now turns to supporting the operator as the Project progresses into construction and drilling execution, with safety, schedule discipline and capital efficiency as key priorities.
“For our shareholders, FID is the point at which uncertainty is materially reduced with Mako now a fully commercialised gas development project with defined infrastructure access, contracted offtake and a clear timeline to production. This represents a significant step toward realising value from Empyrean's interest in the Duyung PSC.”
View from Vox
Final Investment Decision is the critical inflection point for any upstream project. In Empyrean’s case, Mako has now shifted from appraisal risk to funded development, with contracted gas sales providing revenue visibility to 2037.