Empyrean Energy (AIM:EME) announced that the Mako Gas Project in Indonesia's Duyung PSC remains on budget and on schedule for first gas in the fourth quarter of 2027.
Operator Conrad Asia Energy and its subsidiary West Natuna Exploration confirmed the project timeline, with Empyrean entitled to 8.5% of all cash payments to WNEL, including Mako gas sales revenue, subject to documentation flagged in the 10 September announcement.
The donor jack-up rig Valaris 104, destined for conversion into the Mobile Offshore Production Unit, has been wet-towed through the Strait of Hormuz and loaded for transport to Batam, with arrival expected by the end of the third quarter.
Factory acceptance testing of the compression system's key motors is complete in Germany, with shipment to Batam due early in the fourth quarter, while fabrication at the PaxOcean Yard is set to begin before the end of September.
Contracts covering 90% of project capital spend have now been signed, with total project cost holding at $320 million.
Buyer PT PLN Energi Primer Indonesia has completed the pipeline "hot tap" connection into Batam, with commissioning targeted for September or October, well ahead of any Mako gas supply.
"The project remains on budget and on track for first gas in the fourth quarter of 2027", said Empyrean CEO Gaz Bisht, adding that rising data centre-driven power demand in Batam reinforces Mako's strategic position.
News Intelligence what this means for the company
Empyrean's Mako Gas Field development has cleared major construction milestones—the production unit rig is in transit to Indonesia, compression motors have passed factory testing, and 90% of project contracts are signed—while holding to a $320 million budget and Q4 2027 first-gas target. This matters because Empyrean is entitled to 8.5% of all cash payments from the project, including gas sales revenue, and is set to receive $16m in tranches tied to regulatory approval (already granted) and first production.
On-budget, on-schedule progress de-risks Empyrean's near-term cash inflow from Mako, which represents the company's principal development asset. The confirmation that buyer PT PLN Energi Primer Indonesia has completed its pipeline connection ahead of gas supply arrival strengthens the offtake foundation.
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