REG - Coro Energy PLC - Duyung PSC - Gas Sales Agreement with Sembcorp

Coro EnergyAnnouncement

02/09/2024 07:00

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RNS Number : 4828C  Coro Energy PLC  02 September 2024

2 September 2024

 

Coro Energy Plc

("Coro" or the "Company" and together with its subsidiaries the "Group")

 

Duyung PSC - Gas Sales Agreement executed with Sembcorp

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, notes the announcement released by Conrad Asia Energy
Limited ("Conrad"  or the "Operator"), the holder of a 76.5% operated
interest in the Duyung Production Sharing Contract (PSC), offshore Indonesia,
in which the Group has a 15% interest.

 

The Operator announced today that it has agreed a binding Gas Sales Agreement
("GSA") for the sale and purchase of the export portion of natural gas from
the Mako gas field with Sembcorp Gas Pte Ltd ("Sembcorp"), a wholly-owned
subsidiary of Sembcorp Industries Ltd, a leading energy and urban solutions
provider, headquartered in Singapore.

 

The GSA with Sembcorp for gas from the Mako gas field is an important next
step in the commercialisation of the Mako field, the largest undeveloped gas
field in the West Natuna Sea and is a significant milestone on the path to a
Final Investment Decision ("FID") for the Mako project. With this GSA and the
gas sold under a separate domestic market obligation ("DMO") GSA with PGN,
Indonesia's largest gas company 1  (#_ftn1) , all of Mako's current gas
Contingent Resources have been committed to gas buyers.

 

The contract term of the GSA is until the end of the Duyung PSC in January
2037 and allows for the sale of up is 76 billion British thermal units per day
("Bbtud"), which is equivalent to around  76.9 million standard cubic feet
per day ("mmscfd"). The GSA also contains provisions for the sale of up to an
additional 35 Bbtud (around 35.4 mmscfd) should a tie-in pipeline not be built
to the Indonesian domestic market in Batam and DMO sales do not therefore
eventuate.  The commercial terms of the GSA are confidential and are subject
to the approval of the Minister of Energy and Natural Resources (the
"Minister").

 

A formal signing ceremony, in the presence of SKK Migas, will be arranged at a
later date.

Further details can be found in the Conrad announcement this morning.

 

The Company also confirms that it expects to finalise and publish its Annual
Report and unsuspend the shares early in September.

 

For further information please contact:

 

 Coro Energy plc                                          Via Vigo Consulting Ltd

 Cavendish Capital Markets Limited (Nominated Adviser)    Tel: 44 (0)20 7220 0500

 Adrian Hadden

 Ben Jeynes

 Hybridan LLP (Nominated Broker)                            Tel: 44 (0)20 3764 2341 (tel:(0)20%C2%A03764%202341)

 Claire Louise Noyce

 Vigo Consulting (IR/PR Advisor)                          Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation 596/2014 which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 1  (#_ftnref1)
https://asia.nikkei.com/Companies/PT-Perusahaan-Gas-Negara-Tbk.

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