Mako Gas Project Drilling Campaign Contract Awarded

The PDSI-ADES joint venture, comprising Pertamina Drilling Services Indonesia (PDSI) and ADES, has been formally awarded a contract by Conrad Asia Energy's subsidiary, West Natuna Exploration Limited (WNEL), to supply the jack-up rig Admarine 502 for the development drilling campaign of the Mako gas project. This project is located on the Duyung production sharing contract (PSC) offshore Indonesia.

Scope and Duration of the Contract

The independent-leg cantilever unit Admarine 502 will be responsible for drilling six development wells and installing the development conductor support frame (CSF), which is being constructed by PAL. The drilling contract has a firm duration of 180 days, with options available to extend the term. The exact dayrate was not disclosed, but it is described as a "competitive market rate consistent with prevailing regional conditions." The charter for Admarine 502 is expected to commence in the second quarter of 2027.

Project Background and Significance

Conrad Asia Energy took the final investment decision on the $320 million Mako gas field development earlier this year and has since been finalizing key contracts. The first phase of the Mako project includes the six development wells tied back to a leased mobile offshore production unit (MOPU), which will be supplied by Indonesia's Duta Marine. Sales gas will be transported via an approximately 59-kilometer, 18-inch pipeline to the KF platform in the adjoining Kakap PSC, and then through the West Natuna Transportation System pipeline for delivery to the Indonesian domestic market. This contract is considered a critical milestone for the Duyung PSC joint venture as it advances toward drilling at Mako, with the high specification jack-up rig secured on favorable terms to enable efficient execution of the development program.