Coro Energy Sells Duyung Stake to Conrad in $1.25M Deal, Resolving Cash Call Dispute

Mako Field Gas Now Tied to Indonesia’s Domestic Market

Coro Energy’s subsidiary Coro Duyung has cleared a major hurdle in its exit from Indonesia’s West Natuna Sea, securing shareholder approval to sell its 15% stake in the Duyung PSC to Conrad Asia Energy. The deal, structured around $1.25 million in Conrad shares and a settlement of unpaid cash calls, consolidates Conrad’s operated interest in the gas-rich Mako field to 91.5%—pending Indonesian government sign-off. Empyrean Energy retains its 8.5% minority stake.

“This transaction cleans up the partnership structure and aligns Mako’s development with Indonesia’s push for domestic gas utilization,” said a Singapore-based energy analyst familiar with the deal.

The agreement resolves a lingering dispute: Coro will pay $300,000 to Conrad subsidiary WNEL for past-due cash calls and is released from future obligations. In exchange, Coro receives 500,000 Conrad shares upon regulatory approval, plus additional shares worth $750,000 within 45 days of the Duyung PSC’s first commercial production—currently slated for 2026. The Mako field’s 376 billion cubic feet (Bcf) of 2C contingent resources will leave Conrad with 231 Bcf net after the transaction.

Domestic Demand Drives Commercialization

Indonesia’s Ministry of Energy has locked in all Mako gas for domestic consumption, a move that accelerated negotiations. With demand surging from Java and Sumatra’s industrial hubs, the mandate de-risks offtake agreements. “The government’s policy turns Mako from a regional export project into a strategic domestic asset,” noted the analyst. The field’s location—400 km northeast of Singapore’s Batam Island—positions it to feed growing LNG and pipeline demand across the Riau Islands Province.

For Coro, the divestment sharpens focus on its Vietnamese and Philippine renewables portfolio. Conrad, meanwhile, gains near-total control of a shovel-ready project. Final approval from Jakarta is expected by Q4 2024, with drilling to follow. As Southeast Asia’s gas markets tighten, all eyes are on how Conrad leverages its expanded stake.