WNEL Secures Jack-Up Rig for Six-Well Mako Gas Development in Natuna Sea

West Natuna Exploration Ltd. (WNEL), a subsidiary of Conrad Asia Energy, has finalized a drilling contract with Pertamina Drilling Services Indonesia (PDSI) for the deployment of a jack-up rig that will support the initial phase of the Mako gas field development in the Natuna Sea, offshore Indonesia.

The agreement, executed by the PDSI–ADES Consortium, covers the use of the Admarine 502 independent-leg cantilever jack-up unit. Under the terms of the contract, the rig will operate for a firm period of 180 days, with options available for additional extensions. The daily rate was not disclosed but was described by the companies as consistent with prevailing conditions in the regional drilling market. Field operations are scheduled to start in the second quarter of 2027.

Mako is a fully appraised gas accumulation situated within the Duyung Production Sharing Contract (PSC) area in the Natuna Sea. The forthcoming drilling campaign will comprise six development wells and the installation of a conductor support frame, both essential for establishing long-term production infrastructure.

Project execution will employ a leased mobile offshore production unit (MOPU) that will receive wellstream fluids from the new wells. After on-board processing, sales gas will enter a 59-kilometer, 18-inch pipeline that will connect the MOPU to the KF platform in the adjacent Kakap PSC. From there, volumes are slated for transportation into Indonesia’s domestic market via the West Natuna Transportation System pipeline, a major offshore conduit documented by the U.S. Energy Information Administration.

Total capital expenditure to reach first gas is estimated at US$320 million for the entire project. With a 25 percent participating interest, WNEL is expected to fund approximately US$80 million of that amount. The company has also earmarked an additional US$35 million to cover owner-supplied equipment and potential advance payments related to the MOPU lease.

Once on stream, targeted operating expenditures are projected to range between US$70 million and US$80 million per year. That estimate includes pipeline transportation charges and other recurring field costs necessary to maintain the planned production profile.

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The contract signing took place at the Millennium Centennial Centre in Jakarta. WNEL General Manager Danial Murtadho, PDSI President Director Avep Disasmita, and ADES Drilling Indonesia Asia Regional Director Khalid Abdelmuneim Khider Ahmed attended the ceremony, joined by senior management teams from all three companies.

Conrad Asia Energy Managing Director and Chief Executive Officer Miltos Xynogalas described the agreement as a key milestone for the Duyung PSC joint venture, emphasizing that locking in a high-specification rig on competitive terms positions the partnership to execute the upcoming development program as planned.

Conrad Asia Energy concentrates on natural gas exploration and production in Indonesia’s shallow-water regions. The company holds several operated PSC tenements, with the Mako gas field representing its principal asset and the cornerstone of its near-term growth strategy.