Conrad Asia Energy Ltd (ASX:CRD): Mako Gas Construction and the 2027 Start-Up Target

Aditi Sarkar

12 November 2026 03:27 PM AEDT

Conrad Asia Energy Ltd (ASX:CRD): Mako Gas Construction and the 2027 Start-Up Target

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Highlights

Conrad Asia Energy (ASX:CRD) is developing offshore Indonesian Natural Gas projects.
CRD shares traded at AUD 0.695 on 12 November 2026, up 2.21%.
Mako targets first gas in the fourth quarter of 2027.
The October Quarterly Report maintained the US$320 million project cost guidance.

Conrad Asia Energy Ltd (ASX:CRD) explores for and develops natural gas offshore Indonesia through interests in the Duyung, Offshore North West Aceh and Offshore South West Aceh production sharing contracts. On 12 November 2026 its shares traded at AUD 0.695, up 2.21% during the session. The company’s latest reporting centres on construction and contracting at the Mako gas development in the Duyung area. The September-quarter update, released on 28 October, maintained the target for first gas during the fourth quarter of 2027.

Mako Development and Offshore Infrastructure

Mako is the principal development in Conrad’s portfolio. The project design provides for six subsea wells and a mobile offshore production unit, with gas transported through existing and new connecting infrastructure towards customers in Batam. Conrad (ASX:CRD) reported progress on conductor support frame engineering and subsea umbilical, riser and flowline packages during the September quarter. The first steel shipments for the conductor support frame had reached the site, with further fabrication planned. These details show engineering and construction activity, not commencement of commercial gas deliveries.

Production Unit and 2026 Construction Updates

In October 2026, the Valaris 104 donor jack-up rig arrived at a shipyard in Batam for conversion into the Mako mobile offshore production unit. Conrad (ASX:CRD) said the conversion programme was on schedule, with topside-module fabrication under way. The production-unit contractor’s scope includes conversion, mobilisation, charter and subsequent operations and maintenance. The unit has a reported raw-gas design capacity of 172 million standard cubic feet per day. Design capacity indicates equipment specification; it is not a measured output from a producing field.

Farm-Down, Sales Arrangements and Funding

The company reported completion of its Duyung participating-interest farm-down during September 2026 after Indonesian regulatory approval in August. Conrad (ASX:CRD) also received a second Tranche of US$4 million in consideration. Its 28 October report maintained total Mako project cost guidance at US$320 million, describing the development as fully funded with contingency. In early October, the gas sales agreement with PT PLN Energi Primer Indonesia became effective following satisfaction of its conditions. Under that contract, PLN EPI is to purchase all Mako gas production once deliveries commence.

Pipeline Connection and Wider Portfolio

Conrad (ASX:CRD) reported commissioning of the West Natuna Transportation System–Pemping subsea pipeline connection in early October, establishing a delivery route for Mako gas into Batam. Commissioning of that infrastructure is a separate milestone from completed wells or first gas from Mako. Beyond Duyung, Conrad holds operated interests in the two Aceh production sharing contracts offshore Sumatra. These remain distinct exploration and appraisal exposures; resources, field-development timetables and financial outcomes should not be conflated across the portfolio.

Risks and Milestones to Monitor

The remaining Mako construction programme involves drilling, offshore equipment, installation, tie-ins, testing and commissioning. Conrad (ASX:CRD) may face contractor delays, weather restrictions, execution costs and changes to the project schedule. The maintained funding and budget position is a statement as of the October report, not a guarantee that future costs will remain unchanged. Future quarterly disclosures will be useful in establishing when equipment is ready, when wells are drilled and whether the fourth-quarter 2027 first-gas objective is retained.

Key Insights

Conrad’s 2026 disclosures indicate progress from contracting towards physical construction at Mako, supported by the completed farm-down and effective gas sales agreement. The next milestones concern drilling, installation and commissioning. The 12 November share-price change is a separate market observation and does not demonstrate that the earlier disclosures caused the movement.

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