Conrad Asia Energy, an Asia-focused natural gas exploration and development company, has announced that its subsidiary, West Natuna Exploration Limited ('WNEL'), the operator of the Duyung PSC in the Natuna Sea, offshore Indonesia, has formally executed a binding contract with PT. Timas Suplindo ('Timas') for the provision of Subsea Umbilical, Flowline, and Riser ('SURF') EPCI contract to support the development of the Mako Gas Field.
Key Contract Scope:
- Engineering – Verification of Front-End Engineering and Design (“FEED”) and execution of detailed engineering design for the SURF system, including flowlines, export pipeline, risers, subsea structures, umbilical, and installation engineering.
- Procurement – Procurement of all Contractor Furnished Materials and management, storage, and integration of Company Furnished Materials, including line pipes, umbilical, SPCS, and subsea valves.
- Construction / Fabrication – Fabrication, assembly, coating, inspection, and testing of subsea structures and associated SURF components.
- Transportation and Installation – Load-out, transportation, and offshore installation of flowlines, export pipeline, subsea structures, risers, umbilical, and tie-ins.
- Pre-commissioning and Commissioning Support – Execution of pre-commissioning activities, including cleaning, gauging, hydrotesting, dewatering, and leak testing, and provision of support to WNEL during commissioning and start-up.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
'Securing this agreement is a major milestone for the Mako project and underscores our continued progress into the execution phase. We are very pleased to be working with Timas on this key element of the development'.
The Mako Project is structured as a two-phase programme initially comprising six initial development wells tied back to a leased Mobile Offshore Production Unit ('MOPU'). The MOPU has a design capacity of 172 mmscfd. Sales gas will be transported via an approximately 59 km 18-inch pipeline to the KF platform in the adjoining Kakap PSC, then through the WNTS pipeline for delivery to the Indonesian domestic market.
Total Capex to first gas is estimated at US$320 million (100%), (WNEL 25% share approximately US$80 million) in line with prior guidance(1,2). In addition, a provision of approximately US$35 million (100%) had been provided for owner-supplied equipment to be novated to the MOPU provider (refundable) and for potential MOPU down payments. Future operating costs are targeted as US$70-80 million (100%) per annum (including pipeline transportation costs).
The Company will provide further updates as key milestones are achieved.
Source: Conrad Asia
