Indonesia approves Empyrean’s 8.5% stake transfer in Mako gas field

Indonesia’s upstream oil and gas regulator has approved Empyrean Energy’s proposed transfer of its 8.5% stake in the Mako gas field to an undisclosed third party, the company said on Monday.

The Mako field, located in the North Sumatra Basin, is operated by Pertamina Hulu Energi (PHE), a subsidiary of state-owned energy firm Pertamina. Empyrean’s stake in the project is non-operated, meaning it does not hold a controlling interest in the field’s operations or development decisions.

Empyrean Energy, an oil and gas exploration and production company focused on Southeast Asia, confirmed receipt of the regulatory approval in a statement. The company did not disclose the identity of the stake purchaser or the financial terms of the transaction. The transfer is expected to conclude by the end of the third quarter of 2024, pending final documentation and regulatory clearances.

The Mako gas field has been a key asset for Empyrean, contributing to its production portfolio in Indonesia. The field has estimated recoverable reserves of approximately 2.3 trillion cubic feet of natural gas, according to prior company disclosures. The transfer of the stake aligns with Empyrean’s strategy to optimize its asset base and focus on higher-priority projects.

Pertamina Hulu Energi, as the field operator, will continue to oversee the Mako field’s operations under the existing production-sharing contract with Indonesia’s Ministry of Energy and Mineral Resources. The approval from the regulator ensures compliance with local licensing requirements and maintains the project’s operational continuity.