Mako25 Mar 2025 16:44
Now the excitement of the trading day is finally over I am trying to get my head around the Mako Gas Project in Indonesia that EME has an 8.5% interest. In the last Mako RNS these 2 statements seem key:
' As a result of the MEMR Directive, Conrad is working to finalise a Gas Sales Agreement ("GSA") with PLN. Conrad is coordinating closely with PLN and SKK Migas (the upstream regulator), who collectively have targeted that a GSA with PLN will be finalised during March 2025 and be signed in the coming weeks.'
'In parallel, Conrad have advised that negotiations on the sale/ farmout of some of Conrad's Participating Interest ("Pl") in Duyung PSC are advancing, in light of the revised contract arrangements. Empyrean has tag along/ drag along rights that enable participation in any sale/ farmout on pro-rata terms.'
So if the GSA with PLN is finalised and signed in the next few weeks and Conrad Asia are planning to sell some of their interest, how much can EME expect to receive as part of the deal? The figure of £30m has been mentioned but is that accurate? Would EME potentially use that windfall to finance the Wilson River project if it was proved to be profitable?