Conrad Asia Energy Subsidiary Secures Drilling Rig for Mako Gas Field Development
The Admarine 502 will drill six wells in the Natuna Sea, with operations set to commence in the second quarter of 2027 as part of a $320 million project.
West Natuna Exploration (WNEL), a subsidiary of Conrad Asia Energy, has entered into a contract with Pertamina Drilling Services Indonesia (PDSI) to secure a jack-up drilling rig for the development of the Mako gas field in the Natuna Sea. The agreement, executed by the PDSI–ADES Consortium, involves the deployment of the Admarine 502 independent-leg cantilever rig to drill six development wells and install a conductor support frame.
The contract stipulates a firm period of 180 days, with options for extensions, at a day rate aligned with prevailing regional market conditions. Drilling operations are scheduled to begin in the second quarter of 2027. The formal signing ceremony was held at the Millennium Centennial Centre in Jakarta, attended by senior representatives from WNEL, PDSI, and ADES Drilling Indonesia.
Conrad Asia Energy managing director and chief executive Miltos Xynogalas described the agreement as a critical milestone for the Duyung production sharing contract joint venture. He noted that securing a high-specification jack-up rig on favourable terms positions the company to execute its upcoming development programme efficiently. The Mako field, which is fully appraised, forms part of the Duyung area and serves as the principal asset for Conrad Asia Energy’s exploration and production activities in Indonesia’s shallow waters.
The project’s total capital expenditure is estimated at $320 million, with WNEL holding a 25% share equating to approximately $80 million. An additional provision of around $35 million has been allocated for owner-supplied equipment and potential mobile offshore production unit down payments. Targeted annual operating costs are projected between $70 million and $80 million, inclusive of pipeline transportation expenses.
Processed sales gas will be transported via nearly 59km of 18-inch pipeline to the KF platform in the adjacent Kakap production sharing contract area. From there, it will be delivered to the Indonesian domestic market through the WNTS pipeline. This development follows last month’s awarding of the subsea umbilical, flowline, and riser contract for the Mako gas field to Timas Suplindo.
