Mahato
Mahato Production Sharing Contract (PSC)
Cue holds a 11.25%* interest in the Mahato PSC located in Central Sumatra, Indonesia. Oil production from the PB field within the PSC has been ongoing since early 2021, following the drilling of discovery wells in late 2019. The Central Sumatra Basin hosts some of Indonesia's largest oil fields, including the Minas and Duri fields.
Production and Development
Following successful exploration in late 2019, the PB field within the Mahato Production Sharing Contract (PSC) saw the initiation of commercial oil production in early 2021, beginning with the first well, PB-1. The Government of Indonesia has granted approval for a Plan of Development (POD), encompassing a total of eight wells.
Twenty-three production wells have been drilled in the PB field over the last 2 years as part of the existing field development plan. Fourteen new development wells have been approved, with drilling already commenced, and the remaining wells expected to be completed over the next 12-18 months.
Two exploration wells are being planned in the Mahato PSC, targeting independent prospects near the PB field.
Future Potential
The FY24 outlook includes several key developments. First, PB-23 and PB-13 have been completed. Additionally, PB-12 has been drilled and is currently in the testing phase. Furthermore, the plan involves drilling one development well and two water injector wells. We aim to continue to identify and assess further exploration opportunities. We will also assess further development drilling.
The Mahato PSC Joint Venture partners are:
| Texcal Energy Mahato (Operator) |
72.25% |
| Central Sumatra Energy |
11.5% |
| Riau Petroleum |
5.0% |
| Cue Energy |
11.25%* |
* In October 2023, Texcal, the Mahato PSC operator, and Riau Petroleum, an Indonesian local government-owned
entity, signed an agreement to transfer a share of the Mahato PSC’s Participating Interest to Riau Petroleum,
as required by the Production Sharing Contract (PSC) and government regulations. The Government approvals
process for this transfer is ongoing but the joint venture accounting for Cue’s participating interest reduced from
12.5% to 11.25% effective 1 November 2023.
