Jadestone Energy, an independent upstream company focused on the Asia-Pacific region, provides the following update on the Akatara gas development project onshore Indonesia.

As previously reported, gas sales from the Akatara field commenced on 31 July 2024 at an initial rate of c.4 mmscfd. Since then, the gas plant has been progressively made operational and raw gas production into the Akatara Gas Processing Facility (“AGPF”) has been steadily increased to 20 mmscfd, resulting in current gas sales in the range of 11-14 mmscfd.

The AGPF’s export compressors, which pressurise the sales gas for export into the regional gas transportation pipeline system, require further commissioning work, which will allow the plant to achieve the full raw gas volume of c.25mmscfd and deliver the sales gas daily contract quantity (“DCQ”) of c.20 mmscfd, as specified in the Akatara gas sales agreement. This activity is expected to complete this month, with any associated costs remaining the responsibility of the main contractor and equipment vendor.

Paul Blakeley, President and CEO commented:
“We continue to make good progress at the Akatara project towards final completion of the full processing facility, with recent tests demonstrating that well delivery is strong and that the facilities can handle the required raw gas volumes. Final completion, and plant handover to Jadestone, will occur after an extended production test at DCQ volumes, which is a contractual condition. We are confident this will be achieved once the export compressors are fully operational at design pressures.”

Lemang PSC - Akatara field

The Lemang production sharing contract contains the Akatara gas field, which Jadestone has redeveloped to supply gas, condensate and LPGs for local and regional use. The field commenced condensate production in June 2024 following mechanical completion and the introduction of reservoir gas into the facilities, with the key milestone of commercial gas sales achieved in July 2024. 

Jadestone has a 100% operated interest in the Akatara development, with the local government having a back-in right of up to 10% (uncarried interest) from the time of development sanction.

The Lemang PSC is located onshore Sumatra, close to major gas transportation infrastructure.

The Akatara gas field has been independently estimated to contain a 2P gross resource (pre local government back-in right) of 81 bscf of sales gas and 12.3 mmbbls of LPG and condensate, equating to a combined 25.8 mmboe of gross 2P resource.*

Jadestone has signed a gas sales agreement (“GSA”) for the Akatara field with PT Pelayanan Listrik Nasional Batam as buyer. The key terms of the Akatara GSA are detailed below:

Daily contract quantity (“DCQ”) of 20.5 BBtu/d Gas price of US$5.60/mmBtuAnnual take-or-pay quantity set at 90% of the adjusted annual contract quantityMaximum daily quantity set at 110% of DCQ
Jadestone is in the final stages of negotiating a second gas sales agreement for an incremental 3 bscf of gas sales to be sold at a premium to the existing GSA.

* Based on an independent review by ERCE, an independent qualified reserves auditor, dated 31 December 2023.

KeyFacts Energy: Jadestone Energy Indonesia country profile