Why is securing this specific rig contract so important for the Mako gas project?

Securing the jack-up rig from PDSI is critical because offshore drilling equipment is currently in high demand globally, which has driven up costs and limited availability. By locking in a rig with an established local operator, WNEL ensures the project can proceed without costly scheduling delays, keeping the development timeline on track.

Where will the gas produced from the Mako field be sold?

The primary target market for the Mako gas field is Singapore, which will receive the gas via the existing West Natuna Transportation System (WNTS) pipeline. This export strategy leverages established infrastructure, significantly lowering the capital expenditure required for midstream transport and ensuring a ready market.

Who are the key corporate players involved in the Duyung PSC and the Mako field?

The Duyung PSC is operated by West Natuna Exploration Ltd (WNEL), a subsidiary of Conrad Asia Energy, which holds a 76.5% operating interest. The remaining partners in the joint venture are Empyrean Energy and Coro Energy, both of whom stand to benefit from the operational progress signaled by this rig contract.

Offshore Technology · June 8, 2026 (Jun 8) · 1 min read

WNEL signs rig contract for Mako gas field in Natuna Sea

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Conrad Asia Energy, through its subsidiary West Natuna Exploration Ltd (WNEL), has secured a jack-up drilling rig from PT Pertamina Drilling Services Indonesia (PDSI) for the crucial Mako gas field development. This contract signing represents a pivotal operational milestone for the Duyung PSC partners as they transition from planning to active execution in the shallow waters of the Natuna Sea. Securing a rig in a tight global offshore market underscores the project's commercial viability and the operators' commitment to meeting their targeted first gas timeline.

Key Facts

Conrad Asia Energy's subsidiary, West Natuna Exploration Ltd (WNEL), has officially executed a rig contract with PT Pertamina Drilling Services Indonesia (PDSI).
The contract secures a jack-up drilling rig specifically for the development drilling campaign at the Mako gas field.
The Mako gas field is located within the Duyung Production Sharing Contract (PSC) in the shallow waters of the West Natuna Basin, Indonesia.
PDSI is a subsidiary of Indonesia's state-owned energy giant, PT Pertamina, bringing local operational expertise and compliance advantages to the project.
The drilling campaign is a critical path item for the Mako field development, which aims to export gas to Singapore under long-term sales agreements.

Background & Context

The Mako gas field, discovered in 2017, is one of the largest undeveloped gas discoveries in the West Natuna Basin. The project received formal approval for its revised Plan of Development (PoD) from the Indonesian authorities, paving the way for commercialization. Historically, the West Natuna Basin has been a key source of pipeline gas to Singapore, and the Mako development is strategically positioned to utilize existing infrastructure to supply energy-hungry regional markets as older fields face natural decline.

Market Impact

Securing the PDSI jack-up rig mitigates a major project execution risk, given the current high utilization rates and escalating dayrates for offshore drilling units globally. For stakeholders in the Duyung PSC, including Conrad Asia Energy and its partners, this contract locks in operational capacity and firms up the development timeline. The wider Southeast Asian gas market will view this as a positive signal for regional supply security, particularly Singapore, which relies heavily on piped natural gas from Indonesia to fuel its power generation sector.

What to Watch

Following the rig acquisition, the next critical milestones to watch are the final investment decision (FID) by the Duyung PSC partners and the finalization of the Gas Sales Agreement (GSA) with buyers in Singapore. Drilling operations at the Mako field are expected to commence in alignment with the rig's mobilization schedule, targeting first gas production in the mid-2020s. Analysts will also monitor whether Conrad successfully farms down a portion of its working interest to fund its share of the remaining development capital.

Frequently Asked Questions

Why is securing this specific rig contract so important for the Mako gas project?: Securing the jack-up rig from PDSI is critical because offshore drilling equipment is currently in high demand globally, which has driven up costs and limited availability. By locking in a rig with an established local operator, WNEL ensures the project can proceed without costly scheduling delays, keeping the development timeline on track.
Where will the gas produced from the Mako field be sold?: The primary target market for the Mako gas field is Singapore, which will receive the gas via the existing West Natuna Transportation System (WNTS) pipeline. This export strategy leverages established infrastructure, significantly lowering the capital expenditure required for midstream transport and ensuring a ready market.
Who are the key corporate players involved in the Duyung PSC and the Mako field?: The Duyung PSC is operated by West Natuna Exploration Ltd (WNEL), a subsidiary of Conrad Asia Energy, which holds a 76.5% operating interest. The remaining partners in the joint venture are Empyrean Energy and Coro Energy, both of whom stand to benefit from the operational progress signaled by this rig contract.

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