By Romel S. Gurky
UK-listed independent oil, gas firm Coro Energy Plc announced on Thursday the conditional sale of its 15% participating interest in the Duyung PSC, in the Natuna Sea to West Natuna Exploration Ltd. (WNEL), a subsidiary of Conrad Asia Energy Ltd.
Conrad is the operator of Duyung PSC with 76.5 percent interest.
The agreement, which is subject to shareholder approval and the necessary government approvals from the Ministry of Energy and Mineral Resources (MEMR), will release Coro Energy Duyung (Singapore) Pte Ltd from any future financial obligations related to the Duyung project.
Read also: Coro Energy awaits approval for 15% purchase interest in Duyung PSC
The terms of the agreement include a US$300,000 payment to WNEL by Coro Energy, which will save the company $477,000 compared to the previously stated outstanding amounts for the Duyung project. In addition, upon receiving Government Approval, Coro will be issued 500,000 new ordinary shares in Conrad, valued at approximately $225,000.
Coro will also receive further shares in Conrad once commercial production begins at the Duyung project, with Additional Conrad Shares valued at $750,000 issued within 45 days of the first commercial production.
Coro's 15% interest in the Duyung PSC was valued at $18.9 million as of June 30, 2024, but the company plans to impair this asset to reflect the final transaction value.
Conrad, which is in the process of developing the Mako gas field in Duyung PSC is also in the process of farming out part of interest to an undisclosed buyer. All gas from the Mako field, which is originally sold to Singapore’s SembCorp, will be absorbed by state electricity firm PT PLN (Persero).
Editing by Alexander Ginting
