FID made for Mako gas project offshore Indonesia

Conrad Asia Energy and its majority-owned subsidiary West Natuna Exploration Ltd. (WNEL) have taken FID on the Mako gas project offshore Indonesia.

The Mako Field is in the Duyung production sharing contract (PSC) area in the Riau Islands province, 100 km north of Matak Island and 400 km northeast of Batam. WNEL is the PSC operator.

Following the decision, project development activities will accelerate, with first gas planned in fourth-quarter 2027. Conrad estimates overall capex to first gas at $320 million.

The field was discovered in 2017 with the Mako South-1 well, with follow-up appraisal wells drilled in 2019. All the wells were successfully flow-tested.

Under the planned development, six wells will be drilled initially, all connected to a leased MOPU over the field with a design capacity of 172 MMcf/d. From there, the gas will be transferred through a 59-km long, 8-inch pipeline to the KF platform in the adjoining Kakap PSC, and then onward through the West Natuna Transportation System for delivery to the Indonesian domestic sector.

In addition, PLN EPI is constructing a new spur pipeline from the West Natuna Transportation System to Pemping Island, Riau Province, providing a further outlet.

All Mako’s gas will be sold to PLN EPI, owned by PLN Persero, Indonesia’s largest power company, under a contract that runs until the expiry of the Duyung PSC in January 2037. The agreement allows for plateau sales of 111.9 MMcf/d.

To date, orders have been sanctioned for various long-lead equipment items for the project such as compressors, high-grade steel wellheads and control systems, linepipe and umbilical, with further contract awards to come in the next few weeks.