Advancing the Mako Gas Field Development
West Natuna Exploration (WNEL), a subsidiary of Conrad Asia Energy, has reached a significant milestone in the development of the Mako gas field located in the Natuna Sea, offshore Indonesia. The company has officially signed a contract with the Pertamina Drilling Services Indonesia (PDSI)–ADES Consortium to secure a jack-up drilling rig for upcoming operations.
The agreement involves the deployment of the Admarine 502, an independent-leg cantilever jack-up rig. The scope of the contract includes the drilling of six development wells and the installation of a conductor support frame (CSF). According to the project timeline, drilling operations are scheduled to commence in the second quarter of 2027.
Project Scope and Financial Context
The contract covers a firm period of 180 days, with options for further extensions. Conrad Asia Energy noted that the day rate for the rig is aligned with prevailing regional market conditions. This development is part of the broader Duyung production sharing contract (PSC) area, which is fully appraised.
The infrastructure plan for the Mako project involves connecting the six development wells to a leased mobile offshore production unit (MOPU). Processed gas will be transported via approximately 59km of 18-inch pipeline to the KF platform in the adjacent Kakap PSC, eventually reaching the Indonesian domestic market through the WNTS pipeline.
Financial estimates for the project include:
- Total Capital Expenditure: Estimated at $320m (Rp5.81tn) to reach first gas.
- WNEL’s Share: Approximately $80m, representing the company’s 25% stake.
- Additional Provisions: Around $35m allocated for owner-supplied equipment and potential MOPU down payments.
- Operating Costs: Targeted between $70m and $80m annually, inclusive of pipeline transportation expenses.
Strategic Importance for Conrad Asia Energy
Miltos Xynogalas, CEO of Conrad Asia Energy, described the agreement as a “critical milestone” for the Duyung PSC joint venture. He emphasized that securing a high-specification rig on favorable terms allows the company to execute its development program efficiently.
This rig contract follows a recent agreement with Timas Suplindo, which was awarded the subsea umbilical, flowline, and riser contract for the Mako field last month. Conrad Asia Energy continues to focus its operations on natural gas exploration in shallow Indonesian waters, with the Mako field serving as its primary asset.
