West Natuna Exploration, a subsidiary of gas exploration and development company Conrad Asia Energy, signed a binding contract on June 5 to secure a jack-up drilling rig for the Mako gas field offshore Indonesia.
The agreement with the PDSI-ADES consortium, which comprises Pertamina Drilling Services Indonesia and ADES Drilling Indonesia, covers the provision of the Admarine 502 rig to support the offshore development.
Under the terms of the contract, the rig will drill six development wells and install a conductor support frame during a firm period of 180 days. Conrad reported that the contract, which includes options for extension, is expected to commence in the second quarter of 2027.
The Mako project is structured to have these initial wells tied back to a leased mobile offshore production unit.
Sales gas will be transported to the KF platform in the adjoining Kakap PSC through an 18-inch (46-centimetre) pipeline spanning approximately 59 kilometres before entering the WNTS pipeline for delivery to the Indonesian domestic market.
Total capital expenditure to reach first gas is estimated by Conrad at $320 million, with the 25 per cent share of West Natuna Exploration representing approximately $80 million.
In addition, the company has allocated approximately $35 million for owner-supplied equipment to be transferred to the production unit provider and for potential down payments.
Future operating costs for the project are targeted at $70 million to $80 million per annum, which includes pipeline transportation expenses.
"This agreement represents a critical milestone for the Duyung PSC JV as we advance toward drilling at Mako," said Managing Director and Chief Executive Officer Miltos Xynogalas.