Conrad Asia Energy subsidiary West Natuna Exploration has awarded the subsea umbilical, flowline and riser (SURF) contract for the Mako gas field offshore Indonesia to Timas Suplindo.
The value of the engineering, procurement, construction and installation contract has not been disclosed by Conrad Asia, which is listed on the Australia Securities Exchange.
Located in the Natuna Sea, the Mako gas field is fully appraised and part of the Duyung production sharing contract (PSC) area.
Conrad Asia is the operator of the Duyung concession.
The scope of Timas Suplindo’s contract includes the verification of the existing front-end engineering and design and the implementation of detailed design for the SURF system. This encompasses flowlines, export pipelines, subsea structures, risers and umbilicals, as well as all installation engineering.
In terms of procurement, the agreement specifies that Timas Suplindo will manage all required materials including line pipes, umbilical, subsea production control systems (SPCS) and valves.
The construction and fabrication phase of the contract will see the assembly, coating, inspection and testing of various subsea components.
The transportation and installation scope of the contract involves the load-out, transport and offshore set-up of export pipelines, flowlines, risers, subsea structures, tie-ins and umbilical.
Pre-commissioning and commissioning support from Timas Suplindo will include activities such as cleaning, gauging, hydrotesting, dewatering and leak testing.
Additionally, the Indonesian company will assist West Natuna Exploration during the commissioning and start-up phases.
Conrad Asia managing director and CEO Miltos Xynogalas said: “Securing this agreement is a major milestone for the Mako project and underscores our continued progress into the execution phase. We are very pleased to be working with Timas on this key element of the development”.
The Mako gas field is being developed in two phases, beginning with six development wells connected to a leased mobile offshore production unit (MOPU). This unit is capable of handling 172 million standard cubic feet per day.
Gas will be transported via a 59km, 18in pipeline to the KF platform in the neighbouring Kakap PSC, and then via the WNTS pipeline to reach the Indonesian domestic market.
Total capital expenditure until first gas is projected at $320m (Rp5.58tn), with West Natuna Exploration covering approximately $80m for its 25% share. Nations Natuna Barat, a subsidiary of Arsari Group, holds the remaining 75% stake in the Duyung PSC.
Additionally, around $35m has been allocated for owner-supplied equipment, intended to be transferred to the MOPU provider and potentially refundable, as well as for possible MOPU down payments.
Future annual operating costs including pipeline transportation are expected to be between $70m and $80m.
The project’s final investment decision was made by Conrad Asia and West Natuna Exploration in March 2026.
