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 Pertamina Drilling Services Indonesia through the PDSI – ADES Consortium for the provision of a jack-up drilling rig to support the development of the Mako Gas Field.
Key Contract Highlights:
- Rig Type: Independent-leg cantilever jack-up drilling rig.
- Rig Name: Admarine 502.
- Scope of Work: Drilling of six development wells and installation of the Conductor Support Frame (CSF)
- Contract Term: Firm period of 180 days, with options to extend.
- Day Rate: Competitive market rate consistent with prevailing regional conditions.
- Commencement Date: Expected in Q2 2027.
A formal signing ceremony was held at Millennium Centennial Centre 18th floor, office of the Consortium PT Pertamina Drilling Services Indonesia (PT PDSI) – PT ADES Drilling Indonesia, with WNEL represented by Danial Murtadho (WNEL General Manager), PT PDSI represented by Avep Disasmita (President Director), and PT ADES Drilling Indonesia represented by Khalid Abdelmuneim Khider Ahmed (Asia Regional Director). In attendance also were the Management team of the three companies.
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented: 'This agreement represents a critical milestone for the Duyung PSC JV as we advance toward drilling at Mako. Securing a highspecification jack-up rig on favourable terms positions the Company to execute its upcoming development programme efficiently.'
The Mako Project is structured as initially comprising six development wells tied back to a leased Mobile Offshore Production Unit ('MOPU'). 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.
(1) P50 Capex estimate excluding provisions for owner-supplied equipment to be novated to the MOPU provider and for potential MOPU down payments
(2) ASX Release, Annual Report 2025 for the Year Ended 31 December 2024, 31 March 2025
Source: Conrad Asia Energy
