Mako Gas Development: Key Contracts Awarded for Phase One

Conrad Asia Energy has formally awarded major contracts for the first phase of its US$320 million Mako gas development offshore Indonesia, with production start-up on track for the fourth quarter of 2027. Located on the Duyung production sharing contract in the South Natuna Sea, Mako is the largest undeveloped gas field in the region, holding estimated proven and probable reserves of 330 billion cubic feet. The final investment decision was taken in March 2024.

Contract Awards and Local Content

Key contracts have been awarded to local and international firms. Indonesia’s Duta Marine won the contract to supply the leased mobile offshore production unit (MOPU), while compatriot PAL secured the conductor support frame (CSF). Other awards include the subsea umbilicals, risers and flowlines (SURF) engineering, procurement, construction and installation (EPCI) contract to Indonesia’s Timas Suplindo, and the drilling rig supply to Saudi Arabia’s ADES. Unnamed Indonesian contractors will deliver line pipe and conductors, while Indonesian and Malaysian firms will supply compressors, subsea wellheads, christmas trees, and tubulars and casings. High-grade steel tubulars and plates will come from Japan and Indonesia, and umbilicals and subsea control systems from the UK and other countries. Conrad is targeting approximately 60% local content (TKDN) for the project.

Development Scope and Production Capacity

Phase one development includes subsea wells F, M, O, and P; an 11.8-kilometre southwest flowline and an 8.4-kilometre northeast flowline; and a 59-kilometre gas export pipeline to the existing Kakap KF platform. Gas will be supplied to Indonesia’s Batam Island via the West Natuna Transportation System. Contracted sales gas volumes are around 112 million cubic feet per day (MMcfd) at plateau, with production infrastructure designed for a 20-year field life, having a nominal capacity of 150 MMcfd and a maximum capacity of 172 MMcfd.

Project Progress and Energy Context

Conrad is making rapid progress on contracting and procurement, aiming to commit over US$280 million in capital contracts before the end of June 2025. This development aligns with Indonesia’s energy goals, as 82% of the country’s 2025 energy was fossil fuel-generated, and the government targets a significant increase in domestic gas use. State-owned electricity company PLN, which is purchasing all of Mako’s gas, forecasts a 60% rise in national gas demand over the next decade, from about 1.6 Bcfd to 2.6 Bcfd. Indonesia is also reallocating export volumes for domestic use, having diverted over 20 export LNG cargoes to the home market last year. Conrad’s November 2024 agreement to farm out a 75% non-operated interest in the Duyung PSC to Nations Petroleum (part of the Arsari Group) fully funds the Mako project.