Conrad Asia Energy, an Asia-focused natural gas exploration and development company, has announced three important milestones for its Mako Gas Project in the Duyung Production Sharing Contract ('Duyung PSC') in the West Natuna Sea. Conrad’s subsidiary, West Natuna Exploration Limited ('WNEL'), as operator of the Duyung PSC, has been diligently working together with its partner, PT Nations Natuna Barat, a subsidiary of PT Nations Petroleum ('Nations') to deliver these milestones for the Mako Gas Project.
The Valaris 104 donor rig for the Mako production unit has safely arrived at the PaxOcean shipyard in Batam, Indonesia, where it will undergo conversion into the Mobile Offshore Production Unit ('MOPU') that will produce Mako gas. The Gas Sales Agreement ('GSA') with PT PLN Energi Primer Indonesia ('PLN EPI'), under which PLN EPI will purchase 100% of Mako’s gas production, is now effective, and the 'Gas-In' commissioning of the WNTS-Pemping subsea pipeline, which is part of the delivery route for the Mako gas into Batam, has also been executed safely and smoothly.
The Mako development remains on budget and on track for first gas in the fourth quarter of 2027, with fabrication and construction activities now progressing across multiple major project workstreams.
Highlights
- Mako production unit arrives in Indonesia: The donor jack-up rig, Valaris 104, has successfully arrived at the PaxOcean shipyard on the island of Batam in Indonesia, where it will undergo conversion into the Mako MOPU. The MOPU conversion programme remains on schedule.
- Major logistics milestone completed: The donor rig completed its transit through the Strait of Hormuz in September, following extensive planning, regulatory coordination and operational risk management across multiple jurisdictions. Our MOPU contractor PT Duta Marine/PT Pakarti Tirtoagung (“Duta Marine”) engaged GAC Logistics, an experienced maritime operator with recent successful operational experience in the Strait of Hormuz, together with relevant regional authorities, naval task forces, classification bodies and Marine Warranty Surveyors. The transit was completed safely, with comprehensive marine insurance, technical approvals and passage plans secured prior to departure.
- MOPU fabrication underway: Fabrication of the MOPU topside modules has commenced, with a formal “first cut” ceremony targeted for early November. The arrival of the donor rig enables the project to progress into the next phase of physical MOPU conversion and integration.
- CSF and SURF work progressing on schedule: Engineering and procurement for the Conductor Support Frame (“CSF”) and Subsea Umbilical, Riser and Flowline (“SURF”) packages are progressing on schedule. o Gas sales agreement now effective: The GSA with PLN EPI, under which PLN EPI will purchase 100% of Mako’s gas production, is now effective following satisfaction of all conditions precedent, including approval by PLN EPI’s parent company, PT PLN (Persero).
- o Gas transmission connection commissioned: As reported previously, PLN EPI had completed the "hot tap" connection on the West Natuna Transportation System (“WNTS”) to the Pemping gas pipeline project, which is the delivery point for Mako’s gas into Batam. The "Gas-In" commissioning of the WNTS-Pemping subsea pipeline has now been executed safely and smoothly at the start of the month. The Pemping pipeline provides the delivery route for Mako gas into Batam and represents a significant step in establishing the infrastructure required to bring Natuna gas into Indonesia.
- Growing Batam gas market provides potential upside: Gas delivered through the WNTS will support gas supply reliability and the electricity system in Batam, where power demand is experiencing strong growth, including from the rapidly expanding data centre sector. Conrad and Nations are actively evaluating opportunities to increase gas supply from the Duyung PSC to meet this growing demand.
- Mako transitions into full-scale fabrication: With MOPU conversion and fabrication now underway, CSF and SURF construction progressing, the GSA effective, and the gas export route successfully commissioned, Mako is transitioning from development planning into full-scale fabrication. First gas remains on track for the fourth quarter of 2027.
Conrad Executive Chairman Peter Botten commented:
'The past few weeks have marked an important period of progress for the Mako Gas Project, with several critical milestones completed and the project continuing to track to first gas in the fourth quarter of 2027 and within budget. The successful transit and arrival in Batam of the Valaris 104 donor rig was a significant logistical achievement, requiring detailed planning, extensive regulatory coordination and careful management of the operational risks associated with the route. We are very pleased that this complex operation was completed safely, and that the MOPU conversion programme is now underway at PaxOcean.
'We also reached important commercial and infrastructure milestones. The Mako GSA with PLN EPI is now effective, and the commissioning of the WNTS-Pemping pipeline has been completed. This establishes an important part of the infrastructure through which Mako gas is expected to be delivered to Batam. The project is increasingly moving from planning and contracting into full-scale fabrication and remains on budget and on track for first gas in the fourth quarter of 2027.
'The significance of Mako extends beyond the project itself. Batam and the wider Singapore-Johor-Riau region are experiencing strong growth in power demand, including from the rapidly expanding data centre sector, while reliable and competitively priced gas-fired power remains an important part of the region’s energy mix. With the Mako gas sales arrangements and infrastructure in place, Conrad, together with our partner, Nations, is well positioned to contribute to the region’s growing energy requirements, and is also assessing opportunities to increase gas supply to Batam from its broader West Natuna portfolio.'
Source: Conrad Asia Energy
