West Natuna Exploration Limited (WNEL), a subsidiary majority-owned by Singapore’s Conrad Asia Energy, is making significant strides in the natural gas sector with the booking of a jack-up rig for a multi-well drilling campaign in the West Natuna Sea off the coast of Indonesia.
WNEL operates the Duyung PSC situated in the Natuna Sea. Recently, they formalized a contract with PT Pertamina Drilling Services Indonesia (Pertamina Drilling), working through the PDSI – ADES consortium. This agreement will underpin the vital drilling operations for the Mako gas field development.
Essentially, the independent-leg cantilever jack-up rig, named Admarine 502, is slated for an ambitious scope involving the drilling of six development wells and the installation of a conductor support frame (CSF). This firm contract runs for 180 days, with extensions available, and is set to commence in the second quarter of 2027.
Miltos Xynogalas, the Managing Director and CEO of Conrad, shared insights into this pivotal development. He stated, “This agreement represents a critical milestone for the Duyung PSC JV as we advance toward drilling at Mako. Securing a high specification jack-up rig on favorable terms positions the company to execute its upcoming development program efficiently.”
The Mako project itself is structured to initially comprise six development wells, which will be tied back to a leased mobile offshore production unit (MOPU). Gas generated is expected to be transported through a 59-kilometer, 18-inch pipeline leading to the KF platform, located in the adjoining Kakap PSC. From there, the gas will flow through the WNTS pipeline to reach the Indonesian domestic market.
Financially, the total capital expenditure (capex) leading to the first gas is pegged at around $320 million, consistent with earlier estimates. Additionally, approximately $35 million has been earmarked for owner-supplied equipment that will be transferred to the MOPU provider as well as potential MOPU down payments. Anticipated operational costs are projected to be between $70 million and $80 million annually, incorporating pipeline transportation expenses.
Gaz Bisht, Empyrean’s CEO and Technical Director, emphasized the importance of this development, noting, “A binding rig contract is not a plan – it is a commitment, and it signals to the market that the Mako Gas Field is moving to drill. We have a world-class discovered gas resource, a contracted jack-up rig, a clear development program of six wells, and a pathway to market through established Indonesian domestic gas infrastructure.”
Bisht added, “The remaining work is execution. With over US$320 million of development capital underpinned by a contracted drilling schedule and a Q2 2027 commencement date, I am confident that Mako will deliver the value this asset has always promised. Today is a good day for Empyrean.”
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