Coro Energy PLC on Tuesday said the operator of the Duyung production sharing contract has signed an accord with Sembcorp Gas Pte Ltd for a long-term gas sales agreement for the Mako gas field offshore Indonesia.

The South East Asian energy company with a natural gas and clean energy portfolio said the non-binding term sheet has also been endorsed by the Indonesian petroleum upstream regulator SKK Migas.

Coro Energy has a 15% participating interest in the Duyung PSC.

The term sheet relates to the sale of Mako gas from start of production until 2037 for a total sales gas volume of around 293 billion cubic feet, Coro Energy said, with the potential to increase this to around 392 billion cubic feed. It added gas sales would be priced against Brent oil.

Coro Energy said further details of the gas sales agreement will be released to the market once the agreement is completed, with all parties focusing on finalising a definitive gas sales agreement.

‘I am delighted to have now secured the [gas sales agreement] heads at the Duyung PSC, approved by the buyer and, critically, endorsed by the Indonesian authorities. This is a critical step in the commercial de-risking of our project, positioning us perfectly for bids from the operator’s farm-out process, which we expect to play out shortly,’ said Coro Energy Chair James Parsons.

Coro Energy said the Mako gas field was discovered in 2016. Since then, the resource has been delineated through successful appraisal drilling and received formal approval from the Indonesian government for the revised plan of development in late 2022.

Shares in Coro Energy were down 13% to 0.28 pence each in London on Tuesday morning.

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