Page 8 - AsianOil Week 45 2022

AsianOil SOUTHEAST ASIA AsianOil

Conrad gets revised approval to

develop Mako gas field

PROJECTS & CONRAD Asia Energy announced last week production can be allocated for domestic sale.
COMPANIES it had secured written approval from Indone- The existing pipeline is underutilised, leaving
sia’s energy and mineral resources ministry for room for Mako’s gas, which is due to start flowing
a revised plan of development (POD) for the in 2025. Conrad has a 76.5% stake in the Duyung
Mako offshore gas field – the largest undevel- production-sharing contract (PSC) containing
oped gas deposit in the south Natuna Sea Mako, while Coro has 15% and Empyrean has
In a statement, Conrad said that the approved 8.5%.
POD reflected a 458% increase in the field’s con- The approval of the POD represents “a signif-
tingent resources, on the back of a successful icant milestone for the Indonesian government’s
2019 drilling campaign. It replaces the previous objectives for its people in the exploitation of the
POD approved in 2018. Under the revised POD, nation’s natural resources, with the Mako project
contingent resources are estimated at 297bn enhancing Indonesia’s stated goal of doubling its
cubic feet (8.4bn cubic metres), with daily pro- gas production by 2030,” Conrad’s CEO Miltos
duction envisaged at 120mn cubic feet per day Xynogalas said.
(3.4mn cubic metres per day). The next step will be the finalisation of a gas
There is currently no infrastructure to flow sales deal for Mako, Xynogalas said.
gas from the Mako field to domestic markets "With recoverable gas volumes and daily
in Indonesia, Conrad said, the POD involves production now formally approved within the
the export of gas to Singapore, which is already POD Revision, we anticipate, and look forward
linked to the West Natuna gas transport system. to working with the government of Indonesia, in
That is until or unless export routes to Indone- completing gas sales agreement negotiations at
sia are developed, after which point a quarter of the earliest opportunity,” he said. ™

OCEANIA

Australian govt rules out windfall

tax on gas, coal profits

AUSTRALIA AUSTRALIAN Prime Minister Anthony "We have contracts with other nations for
Albanese said on November 11 that his gov- supply. We don't intend, of course, to interfere
The government will ernment would consider all steps to curb high with any of that. So that limits what options are
consider all steps to energy prices including a price cap, but did on the table," he said.
curb high energy prices, not consider a tax on mining companies as an The EU and the UK have already imposed
however. option. windfall taxes on oil and gas company profits,
In the budget it released last month, Austral- and US President Joe Biden has also threatened
ia’s Labour government predicted that house- to impose one if producers do not cut their costs,
hold gas and electricity prices would climb by although such a measure would be unlikely to be
20-30% over both of the next two years, in part supported in the US Congress.
because of the global energy crunch that has Australia’s government has come under pres-
been exacerbated by Russia’s war in Ukraine. sure from a broad coalition of economists, union
"Look, [a price cap on gas] is one of the leaders and progressive politicians to introduce a
options that is under consideration," Albanese windfall tax – a measure that the Australia Insti-
told radio station 2GB on November 11. tute estimates could raise up to $40bn in revenue
There have been mounting calls in Australia for the federal budget. The same institute pro-
for a windfall tax to be imposed on the record jects that the value of LNG exports from Aus-
profits that coal miners and gas producers tralia rose from $30.5bn in 2020-21 to $70.2bn
have made on the back of the energy crisis. But in 2021-22.
Albanese said that there were no such plans The Labour government had passed laws
under discussion in government. in 2012 for a 30% tax on iron ore and coal
"I'm not quite sure what a mining tax is besides mine income, but they were reversed two
a slogan," he said, stressing that the government years later by the conservative coalition gov-
would avoid measures that would affect supply. ernment. ™

P8 www. NEWSBASE .com Week 45 14•November•2022