Conrad Asia Energy announced the signing of a binding contract for the supply of a jack-up drilling rig that will support the next phase of development of the Mako Gas Field, one of the largest natural gas discoveries made in recent years in the Natuna Sea, off the coast of Indonesia.
Through its subsidiary West Natuna Exploration Limited (WNEL), operator of the Duyung PSC, the company formalized the agreement with PT Pertamina Drilling Services Indonesia through the PDSI–ADES Consortium. The contract covers the use of theAdmarine 502 jack-up rig, an independent-leg, cantilevered unit designed for offshore drilling operations in shallow waters.
The platform will support the drilling of 6 development wells
According to the agreed terms, the Admarine 502 will be used to drill six development wells and carry out the installation of the conductor support structure (CSF), a fundamental infrastructure for the future production of the field.
The contract has a firm term of 180 days with options for extension and anticipates the start of operations during the second quarter of 2027. Although the exact rate was not disclosed, Conrad indicated that the agreement was closed under competitive conditions aligned with the regional market.
A significant step in the execution of the Mako project
Representatives from WNEL, PT Pertamina Drilling Services Indonesia and PT ADES Drilling Indonesia participated in the signing ceremony, along with the management teams of the three organizations.
Miltos Xynogalas, CEO of Conrad Asia Energy, noted that the procurement of a high-specification platform strengthens the operational readiness of the project and facilitates the efficient execution of the upcoming development program.
Early selection of the drilling unit reduces uncertainties associated with the availability of specialized equipment in the regional offshore market and allows progress in the technical planning of future field activities.
Infrastructure designed to supply the Indonesian market
The initial development of the Mako Gas Field includes six wells connected to a leased Mobile Offshore Production Unit (MOPU). Once processed, the gas will be transported via an approximately 59-kilometer, 18-inch pipeline to the KF platform located at the adjacent Kakap PSC.
Subsequently, the hydrocarbon will be delivered to the West Natuna Transportation System (WNTS), from where it will supply the Indonesian domestic market.
This scheme seeks to leverage existing infrastructure to optimize development costs and accelerate the arrival of the first commercial gas.
Planned investment of $320 million
Conrad estimates that the total investment required to achieve initial gas production amounts to approximately $320 million on a 100% project basis. Of that amount, WNEL’s share, equivalent to 25%, is around $80 million.
The company is also planning for additional provisions for owner-supplied equipment and potential upfront payments related to the future MOPU. Annual operating costs after the start of production are estimated at $70 million to $80 million for the entire development.
Mako Gas Field advances as a crucial asset in the region
Located in the shallow waters of the Natuna Sea, the Mako Gas Field is Conrad Asia Energy’s flagship project and is among the most important gas discoveries in the region.
The company maintains a strategy focused on identifying and developing gas assets with value creation potential through technical solutions and low-cost development schemes. With the drilling rig contract now secured, the project is moving into one of the most important stages of its execution before commercial production begins.
Source: Conradasia
Photo: Shutterstock
