en.Wedoany.com Reported - West Natuna Exploration (WNEL), a subsidiary of Conrad Asia Energy, has signed a contract with Pertamina Drilling Services Indonesia (PDSI) to lease a jack-up rig for the development of the Mako gas field in the Natuna Sea, offshore Indonesia.
The gas field has been fully appraised and is part of the Duyung Production Sharing Contract (PSC) area. The contract will be executed by the PDSI-ADES consortium, deploying the Admarine 502 independent-leg cantilever jack-up rig. The scope of work includes drilling six development wells and installing Conductor Support Frames (CSF).
The contract has a fixed term of 180 days, with an option for further extension, and the day rate is in line with prevailing regional levels. Drilling operations are scheduled to commence in the second quarter of 2027. The signing ceremony was held at the Millennium Century Center in Jakarta, attended by representatives from WNEL, PDSI, and ADES Drilling Indonesia.
WNEL General Manager Danial Murtadho, PDSI President Director Avep Disasmita, and ADES Drilling Indonesia Asia Regional Director Khalid Abdelmuneim Khider Ahmed participated in the ceremony along with their respective management teams. Conrad Asia Energy Managing Director and CEO Miltos Xynogalas stated that the agreement is a key milestone for the Duyung PSC joint venture as it enters the drilling phase for the Mako gas field. Securing a high-specification jack-up rig at favorable terms ensures the company can efficiently execute its development plan.
According to Conrad Asia Energy, the Mako project will initially drill six development wells, which will be tied back to a leased Mobile Offshore Production Unit (MOPU). After processing, the sales gas will be transported via an 18-inch pipeline approximately 59 kilometers long to the KF platform in the adjacent Kakap PSC area, and then supplied to the Indonesian domestic market through the WNTS pipeline. The total capital expenditure required from project start-up to first gas is estimated at $320 million (approximately IDR 5.81 trillion), with WNEL holding a 25% share (approximately $80 million). An additional approximately $35 million is reserved for owner-supplied equipment and potential MOPU advance payments. Target operating costs are set at $70 million to $80 million per year, including pipeline transportation fees.
Conrad Asia Energy focuses on natural gas exploration and production in shallow water areas of Indonesia, holding several operatorships through production sharing contracts. The Mako gas field in the Natuna Sea is its core asset. Last month, West Natuna Exploration awarded the subsea umbilical, flowline, and riser contract for the field to Timas Suplindo.
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