PT Nations Natuna Barat (“Nations”), a subsidiary of the Arsari Group, has entered into binding agreements with Conrad Asia Energy, via its wholly-owned subsidiary West Natuna Exploration Limited (“WNEL”), to acquire a 75% non-operated participating interest in the Duyung Production Sharing Contract (“PSC”), which holds the significant Mako gas field in the Natuna Sea.

Under the terms of the transaction, Nations will provide full funding for 100% of the development costs for the first phase of the Mako project, including working capital. WNEL will retain 25% participating interest, with its share of development costs carried by Nations through to first commercial production, subject to customary Indonesian regulatory approvals.

As part of the deal, Nations will pay Conrad a total consideration of US$ 16 million, payable in three tranches:

• US$ 5 million upon satisfaction of certain conditions precedent (expected in Q1 2026),
• US$ 4 million on completion of the transaction (targeted by Q3 2026), and
• US$ 7 million at the date of first commercial production (anticipated in Q4 2027).

The full development of the Mako gas field is estimated to require capital expenditures of approximately US$ 320 million. Under a Carry Loan Agreement (CLA), Nations’ financing will also cover Conrad’s share of the first-phase development. Conrad will repay its portion of the carried costs from its share of production once the field is operational.

Strategic and Operational Rationale

• Nations’ entry secures a transformational capital package for Mako, substantially de-risking the project while preserving Conrad’s role as operator.
• WNEL, as operator of the Duyung PSC, will continue to lead development leveraging its deep technical understanding of the Mako reservoir.
• The transaction aligns with Indonesia’s strategic energy priorities: supplying gas for domestic use and supporting national energy security.
• First gas is expected in Q4 2027, delivering critical gas volumes to Indonesia’s domestic market via the approved development plan.

About the Mako Field and Duyung PSC

• The Duyung PSC, located in the West Natuna Sea, contains the Mako gas field, one of the largest undeveloped gas discoveries in the region.
• Mako’s 2C contingent resources are estimated at ~376 Bcf (gross).
• The development plan envisages six initial wells tied back to a leased Mobile Offshore Production Unit (MOPU), with gas transported via pipeline to existing infrastructure.
• In July 2025, Conrad signed a binding Gas Sales Agreement (GSA) with PT PLN Energi Primer Indonesia (“PLN EPI”) for domestic gas offtake, covering up to 111 Bbtud and extending through the PSC’s term.

KeyFacts Energy: Conrad Indonesia country profile