Conrad Asia Energy Limited (ASX:CRD): What Is the Mako Development Status in 2026?

Aditi Sarkar

05 November 2026 10:22 PM AEDT

Conrad Asia Energy Limited (ASX:CRD): What Is the Mako Development Status in 2026?

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Highlights

The Mako project moved into full-scale fabrication during the September 2026 quarter.
The company reported more than 90% of project Capital commitments contracted or awarded.
Mako project cost guidance remained USD 320 million on a 100% basis.
Conrad Asia Energy (ASX:CRD) continued targeting first gas in the fourth quarter of 2027.

Conrad Asia Energy Limited (ASX:CRD) develops offshore Natural Gas Assets in Indonesia, with the Mako field in the Duyung production-sharing contract at the centre of its activities. In 2026, work progressed from development planning into fabrication and contractor execution. Conrad shares closed at AUD 0.725 on 5 November 2026. Its October Quarterly Report described funding arrangements, progress on an offshore production unit and a gas sales agreement that had become effective.

Mako Development and Contractors

Conrad Asia Energy (ASX:CRD) reported that more than 90% of Mako’s capital contract commitments had been signed or awarded by the September 2026 quarter. The project had entered full-scale fabrication, including work associated with the production unit, conductor support frame and subsea infrastructure. The donor drilling rig intended for conversion into a mobile offshore production unit arrived at a yard in Indonesia in October. Physical conversion and integration still need to be completed before the unit can serve the field.

The proposed initial development comprises six wells, an offshore processing Facility and a connection into regional gas transportation infrastructure. The company continued to target first gas in the fourth quarter of 2027. That target is contingent on construction, installation, drilling, commissioning and operational readiness. Contractor awards reduce some procurement uncertainty but do not remove the possibility of delays or cost changes during execution.

Funding, Ownership and Gas Sales

Conrad Asia Energy (ASX:CRD) reported unchanged Mako project capital-cost guidance of USD 320 million on a 100% basis, with the development described as fully funded under its existing arrangements. The company completed a farm-down transaction during 2026, received a further USD 4 million instalment and retained operatorship. Its reported Duyung participating interest was 25% at the end of the relevant transaction steps, with an expected adjustment to 22.875% after additional settlement actions.

The gas sales agreement with an Indonesian domestic buyer became effective in early October after its outstanding conditions were satisfied. A transportation connection toward Batam was also commissioned. These steps address the commercial route for future gas output. Nevertheless, project Revenue depends on first gas being achieved, volumes delivered and the terms of the applicable sales and operating agreements. Gas sales agreements do not represent current production.

Other Assets and Execution Risks

Beyond Mako, Conrad Asia Energy (ASX:CRD) holds operated interests in the Offshore North West Aceh and Offshore South West Aceh production-sharing contracts. During 2026, discussions concerned appraisal and potential development planning for discovered gas accumulations. Appraisal, partner negotiations and further evaluation are separate from sanctioned production projects. Capital allocation across the portfolio will depend on technical results, approvals and commercial priorities.

Construction and marine operations at Mako expose Conrad Asia Energy (ASX:CRD) to contractor delivery, weather, regulatory and commissioning risks. The company’s later releases will be relevant for the timing of well drilling, completion of the production facility and installation of subsea connections. The stated first-gas target remains a company expectation, not a completed milestone.

Key Insights

Conrad Asia Energy (ASX:CRD) reported tangible progress on Mako contracts, equipment fabrication and gas sales arrangements in 2026. The next question is whether drilling and offshore construction proceed according to the reported timetable and budget. Future cash generation depends on successful completion of those steps, rather than on project sanction alone.

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