Coro Energy PLC, a South East Asian energy company, has provided an update on the Duyung Production Sharing Contract (PSC) offshore Indonesia, in which the Group holds a 15% interest. The Operator, Conrad Asia Energy Ltd, has made significant progress in maturing the Mako project within the Duyung PSC. The front end engineering design studies for the Mako development project have concluded, with estimated capital costs for Phase 1 at US$325 million based on a 100% participating interest.
The Company signed a non-binding term sheet with Sembcorp Gas Pte Ltd for a Gas Sales Agreement (GSA) and has been negotiating improved price formulas. However, the finalization of the GSA has been delayed until the end of Q2 2024. The Company is also engaged in confidential discussions with potential partners regarding the acquisition of a Participating Interest in the Duyung PSC.
Conrad has appointed a financial advisor to assist with the debt funding portion of its share of the Mako project capital cost and has received an indicative term-sheet from a potential lender. The Chairman, James Parsons, expressed optimism about the project's economics and the likely attractiveness to debt providers and potential farm-in partners. However, the final investment decision (FID) and production start-up are expected to be delayed until mid-2024 and mid-2026, respectively.
The Company is also focusing on the growth of its renewables portfolio in Vietnam and the Philippines. For further information, the Company's contact details have been provided.