Criterium Energy’s Southeast Mengoepeh gas project in Indonesia is approximately 70% complete, with first gas still targeted for the third quarter of 2026.
The project includes a six-inch pipeline running about 24 kilometres from the Southeast Mengoepeh field to the Teluk Rendah Gas Plant. Once operational, the pipeline is expected to support gas production of between five million and eight million cubic feet per day.
Gas sales are planned under a fixed take-or-pay structure. This should provide greater revenue visibility once production begins and reduce exposure to short-term fluctuations in customer demand.
Construction started in March 2026. Several crews are working across multiple staging areas, and more than 150,000 safe working hours have been completed. The remaining work includes trenching, backfilling, commissioning and start-up. Contractor PT Olindo continues to target first production in the third quarter. With most of the project now complete, the focus has shifted to finishing construction, securing final approvals and bringing the system into operation.
Criterium has received a Gas Allocation Letter from Indonesian regulator SKK MIGAS. The company is still awaiting approval of the Gas Sales Agreement and Facility Sharing Agreement. These approvals are expected before pipeline construction is completed.
The company has funded its full US$1.9 million commitment to the project from existing cash and operating cash flow. PT Olindo is funding the pipeline construction costs, which limits Criterium’s direct exposure to the remaining capital requirements.
Criterium also reported preliminary results for the second quarter of 2026. Average oil production was 627 barrels per day. Some production was temporarily offline while the company carried out well testing and intervention work.
The average realised oil price was US$106 per barrel during the quarter. Operating netbacks rose by 50% from the previous quarter to US$36 per barrel, supported by higher revenue and stable operating costs. The company finished the quarter with US$1.5 million in cash, or about C$2.2 million. This was its highest cash balance in more than 18 months.
Criterium Energy Ltd (TSXV:CEQ) is Canadian-based upstream energy company focused on the aggregation and sustainable development of assets in Southeast Asia that can deliver scalable growth and cash flow generation.
