en.Wedoany.com Reported - West Natuna Exploration, a subsidiary of Conrad Asia Energy, has signed binding contracts with Duta Marine and Pakarti Tirtoagung to lease a mobile offshore production unit (FPU) to support the development of the Mako gas field in the Natuna Sea, Indonesia.

Under the contract terms, a donor jack-up rig requiring conversion will be transformed into a production facility on Batam Island, designed with a raw gas processing capacity of 172 million cubic feet per day (approximately 4.87 million cubic meters). After mobilization, the bareboat charter is planned to continue until January 2037, with provisions for a maximum of five one-year renewal options.

In addition to operating and maintaining the unit in accordance with international classification society standards, the contractor is also required to provide crew accommodation and related support services. According to the financial agreement, the partners will first pay a $4 million down payment to purchase the donor platform, and make phased payments of $26 million for facility equipment.

Conrad Asia Energy estimates total capital expenditure required to achieve first gas at $320 million. West Natuna Exploration holds a 25% stake, contributing approximately $80 million. The development plan includes six production wells tied back to the production unit, and a 59-kilometer-long, 18-inch (45.72 cm) diameter pipeline to deliver sales gas to the Kakap production sharing contract pipeline network.

The phased payments for the above equipment have been included in the previously announced reserve of approximately $35 million. The developer has set a target for future operating costs (including pipeline transportation) at $70 million to $80 million per year.

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