Conrad Asia Energy Locks in 100% Gas Buyer as Mako Stays on Track for 2027
Key Takeaways
- PLN EPI will buy 100% of Mako's gas production now that the Gas Sales Agreement is effective, with all conditions precedent satisfied including PT PLN (Persero) approval.
- The WNTS-Pemping subsea pipeline has completed Gas-In commissioning, giving Mako a ready delivery route into Batam.
- The Valaris 104 donor rig has cleared the Strait of Hormuz and arrived at PaxOcean in Batam, where it will become the Mako MOPU.
- MOPU topside fabrication has started, with a first cut ceremony targeted for early November, while CSF and SURF packages are on schedule.
- Conrad says Mako is on budget for first gas in Q4 2027, though no financial figures were disclosed.
Mako Gas Project hits three milestones as production unit arrives in Indonesia
Conrad Asia Energy has announced three milestones for its Mako Gas Project in the West Natuna Sea. The Valaris 104 donor rig has arrived at the PaxOcean shipyard in Batam, Indonesia, where it will be converted into the Mobile Offshore Production Unit (“MOPU”) that will produce Mako gas.
The Gas Sales Agreement (“GSA”) with PT PLN Energi Primer Indonesia (“PLN EPI”) is now effective, and “Gas-In” commissioning of the WNTS-Pemping subsea pipeline has been executed safely and smoothly.
The company says the development remains on budget and on track for first gas in the fourth quarter of 2027. The project sits within the Duyung Production Sharing Contract (“Duyung PSC”), operated by Conrad’s subsidiary West Natuna Exploration Limited (“WNEL”) with partner PT Nations Natuna Barat, a subsidiary of PT Nations Petroleum (“Nations”).
For investors, the message is simple. Several de-risking steps are stacking up as the project moves toward first gas.
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Milestones delivered across the Mako project
Donor rig completes Strait of Hormuz transit
The donor rig completed its transit through the Strait of Hormuz in September, following extensive planning, regulatory coordination and operational risk management across multiple jurisdictions. The MOPU contractor, PT Duta Marine/PT Pakarti Tirtoagung (“Duta Marine”), engaged GAC Logistics, which the company describes as an experienced maritime operator with recent successful operational experience in the Strait.
Duta Marine also worked with relevant regional authorities, naval task forces, classification bodies and Marine Warranty Surveyors. Marine insurance, technical approvals and passage plans were secured prior to departure, and the transit was completed safely.
A complex logistics risk is now behind the project.
Peter Botten, Executive Chairman
“The successful transit and arrival in Batam of the Valaris 104 donor rig was a significant logistical achievement, requiring detailed planning, extensive regulatory coordination and careful management of the operational risks associated with the route…”
Fabrication and engineering progress
Fabrication of the MOPU topside modules has commenced, with a formal “first cut” ceremony targeted for early November. The MOPU conversion programme remains on schedule.
The company reported the following workstreams:
- MOPU conversion at PaxOcean, now underway following the rig’s arrival.
- MOPU topside module fabrication, which has commenced.
- Engineering and procurement for the Conductor Support Frame (“CSF”) package, progressing on schedule.
- Engineering and procurement for the Subsea Umbilical, Riser and Flowline (“SURF”) package, progressing on schedule.
Commercial and infrastructure milestones
The GSA is now effective following satisfaction of all conditions precedent, including approval by PLN EPI’s parent company, PT PLN (Persero). Under the GSA, PLN EPI will purchase 100% of Mako’s gas production.
PLN EPI had earlier completed the “hot tap” connection on the West Natuna Transportation System (“WNTS”) to the Pemping gas pipeline project. The “Gas-In” commissioning of the WNTS-Pemping subsea pipeline was executed at the start of the month, and the Pemping pipeline provides the delivery route for Mako gas into Batam.
| Milestone | Status | Investor Significance |
|---|---|---|
| Valaris 104 donor rig | Arrived at PaxOcean shipyard, Batam | MOPU conversion can progress into physical conversion and integration |
| Gas Sales Agreement with PLN EPI | Now effective | PLN EPI will purchase 100% of Mako’s gas production |
| WNTS-Pemping pipeline | “Gas-In” commissioning executed | Provides the delivery route for Mako gas into Batam |
| MOPU topside fabrication | Commenced; “first cut” ceremony targeted for early November | Fabrication now underway |
| CSF and SURF packages | Engineering and procurement on schedule | Supports the Q4 2027 first gas target |
Understanding MOPUs and why gas sales agreements matter
A Mobile Offshore Production Unit is a converted jack-up rig. A jack-up rig is a platform with legs that rest on the seabed, and once converted it can process gas offshore.
A gas sales agreement sets out who buys the gas. With PLN EPI purchasing 100% of Mako’s gas production under the GSA, the project has a single buyer for its output, which gives you clearer visibility over where revenue is expected to come from.
Buyers still need to be reached, though. That is why the commissioned pipeline matters: it provides the delivery route for Mako gas into Batam.
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Batam demand and the path to first gas
Growing Batam gas market offers upside
Gas delivered through the WNTS will support gas supply reliability and the electricity system in Batam. Power demand there is experiencing strong growth, including from the rapidly expanding data centre sector.
Peter Botten also pointed to the wider Singapore-Johor-Riau region, which he said is experiencing strong growth in power demand. Conrad and Nations are evaluating opportunities to increase gas supply from the Duyung PSC. That remains under evaluation only, and nothing has been committed.
Mako moves into full-scale fabrication
With MOPU conversion and fabrication underway, CSF and SURF construction progressing, the GSA effective and the gas export route commissioned, Mako is transitioning from development planning into full-scale fabrication.
First gas remains on track for the fourth quarter of 2027. The announcement discloses no financial figures beyond the on budget statement, so the key takeaway is delivery progress rather than new numbers.
Peter Botten, Executive Chairman
“With the Mako gas sales arrangements and infrastructure in place, Conrad, together with our partner, Nations, is well positioned to contribute to the region’s growing energy requirements…”
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