Conrad Asia Energy has confirmed the arrival of the Valaris 104 jack-up rig at PaxOcean's shipyard in Batam in Indonesia, where it will be converted into a mobile offshore production unit (MOPU) for the Mako gas project in the West Natuna Sea.
The arrival marks a key milestone for the development in the Duyung Production Sharing Contract (PSC), which remains on budget and on schedule to achieve first gas in the fourth quarter of 2027.
The donor rig reached Batam after completing its transit through the Strait of Hormuz in September, following planning and coordination involving maritime authorities, naval task forces, classification bodies and marine warranty surveyors.
The transit was managed by GAC Logistics, engaged by MOPU contractor PT Duta Marine/PT Pakarti Tirtoagung.
Fabrication of the MOPU topside modules has commenced, with a formal first-cut ceremony targeted for early November. The arrival of Valaris 104 allows the project to advance into the next phase of physical conversion and integration.
Engineering and procurement activities for the conductor support frame (CSF) and subsea umbilical, riser and flowline (SURF) packages are also progressing on schedule.
Conrad confirmed that its gas sales agreement with PT PLN Energi Primer Indonesia (PLN EPI) has become effective following satisfaction of all conditions precedent, including approval from PLN EPI's parent company, PT PLN (Persero).
Under the agreement, PLN EPI will purchase 100% of Mako's gas production.
The company also reported the completion of gas-in commissioning of the West Natuna Transportation System (WNTS)-Pemping subsea pipeline earlier this month.
The pipeline, connected to the WNTS through a previously completed hot tap, forms part of the planned gas delivery route from Mako to Batam.
“The Mako GSA with PLN EPI is now effective, and the commissioning of the WNTS-Pemping pipeline has been completed. This establishes an important part of the infrastructure through which Mako gas is expected to be delivered to Batam,” said Peter Botten, Conrad’s Executive Chairman.
Conrad operates the Duyung PSC through its subsidiary West Natuna Exploration, alongside partner PT Nations Natuna Barat, a subsidiary of PT Nations Petroleum.
With the MOPU conversion underway, the gas sales agreement effective and the pipeline connection commissioned, the project is progressing into full-scale fabrication ahead of its planned start-up in late 2027.
AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week