The Mako gas project offshore Indonesia has moved further towards development after operator Conrad Asia Energy signed a binding contract with state-owned shipbuilder PT PAL Indonesia for a key piece of offshore infrastructure, project partner Empyrean Energy informed.
The contract covers the engineering, procurement, construction and transportation of the Conductor Support Frame (CSF), a critical component of the Mako field development in the Duyung production sharing contract (PSC) area in the West Natuna Sea.
The award marks another step in transitioning the project from front-end engineering and design work into the execution phase as partners target first gas from one of Indonesia's largest undeveloped gas discoveries.
The Mako project is planned to initially comprise six development wells tied back to a leased Mobile Offshore Production Unit (MOPU).
Gas from the field will be transported through an approximately 59-km, 18-inch pipeline to the Kakap PSC's KF platform before being delivered to the Indonesian domestic market via the West Natuna Transportation System (WNTS) pipeline.
Total capital expenditure to first gas is estimated at around $320 million on a 100% basis.
Empyrean Chief Executive and Technical Director Gaz Bisht said the contract represented another important milestone in de-risking the project's execution schedule.
"The CSF is a critical structural component of the development, and securing this contract with PT PAL, a well-established Indonesian fabricator, represents another important step in de-risking the project's execution timeline towards first gas," Bisht said in a statement.
"The CSF is a critical structural component of the development, and securing this contract with PT PAL - a well-established Indonesian fabricator - represents another important step in de-risking the project's execution timeline towards first gas.
"This milestone follows a period of sustained progress at Mako and underscores the project's transition from front-end engineering into the execution phase. Empyrean continues to work closely with Conrad and WNEL as the Mako Gas Project advances, and we look forward to providing further updates as the development progresses towards first gas,” said Gaz Bisht, Empyrean CEO and Technical Director.
The Mako field is considered strategically important for Indonesia's efforts to boost domestic gas supplies as the country faces declining production from mature fields and rising demand for natural gas from industry and power generation.
Conrad Asia Energy, through its majority-owned subsidiary West Natuna Exploration Limited (WNEL), operates the Duyung PSC. Empyrean Energy holds an indirect interest in the project through its shareholding in Conrad.
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