Singapore-headquartered natural gas player Conrad Asia Energy is breathing new life into an aging offshore asset, with the arrival of a 2002-built jack-up rig at a Southeast Asian shipyard to begin its transformation into a mobile offshore production unit (MOPU). This type of rig repurposing work is seen as a great fit for regional energy developers looking to fast-track production, setting the stage for extensive topsides fabrication and integration before the unit heads out for work at a natural gas development project in Indonesian waters.
Conrad Asia Energy has revealed three important achievements for its Mako gas project in the Duyung production sharing contract (Duyung PSC) in the West Natuna Sea, with its subsidiary, West Natuna Exploration Limited (WNEL), as operator of the asset, diligently working together with its partner, PT Nations Natuna Barat, a subsidiary of PT Nations Petroleum, to deliver these milestones.
Among the three new developments is the arrival of the 2002-built Valaris 104 donor rig, which was acquired from Valaris to serve as the Mako production unit, at PaxOcean's shipyard in Batam, Indonesia, where it will undergo conversion into a MOPU that will enable the production of Mako gas.
The gas sales agreement (GSA) with PT PLN Energi Primer Indonesia (PLN EPI) for the purchase of 100% of Mako’s gas production is now effective, and the gas-in commissioning of the West Natuna Transportation System (WNTS)-Pemping subsea pipeline, which is part of the delivery route for the Mako gas into Batam, has also been executed safely and smoothly, according to Conrad.
The company elaborates that gas delivered through the WNTS will support gas supply reliability and the electricity system in Batam, where power demand is experiencing strong growth, including from the rapidly expanding data centre sector. Conrad and Nations are actively evaluating opportunities to increase gas supply from the Duyung PSC to meet this growing demand.
The Valaris 104 rig was stacked for several years before Valaris sold it as a donor rig for non-drilling, production purposes, which offered a profitable exit strategy for an asset that was inactive in the drilling market, while providing the Mako project developers with a ready-made structural hull.
The conversion of an existing jack-up rig into a MOPU is perceived to significantly accelerate the timeline to first gas production compared to constructing a new production facility. The donor rig completed its transit through the Strait of Hormuz in September, following extensive planning, regulatory coordination, and operational risk management across multiple jurisdictions.
Peter Botten, Conrad’s Executive Chairman, commented: “The past few weeks have marked an important period of progress for the Mako gas project, with several critical milestones completed and the project continuing to track to first gas in the fourth quarter of 2027 and within budget.
“The successful transit and arrival in Batam of the Valaris 104 donor rig was a significant logistical achievement, requiring detailed planning, extensive regulatory coordination and careful management of the operational risks associated with the route.”
Conrad’s MOPU contractor, PT Duta Marine/PT Pakarti Tirtoagung (Duta Marine), engaged GAC Logistics, a maritime operator with recent successful operational experience in the Strait of Hormuz, together with relevant regional authorities, naval task forces, classification bodies and marine warranty surveyors to enable the transit.
The fabrication of the MOPU topside modules is underway, with a formal first cut ceremony targeted for early November, as the arrival of the rig enables the project to progress into the next phase of physical MOPU conversion and integration.
The Asian company underlines that engineering and procurement for the conductor support frame (CSF) and subsea umbilical, riser and flowline (SURF) packages are progressing on schedule.
Botten added: “The significance of Mako extends beyond the project itself. Batam and the wider Singapore-Johor-Riau region are experiencing strong growth in power demand, including from the rapidly expanding data centre sector, while reliable and competitively priced gas-fired power remains an important part of the region’s energy mix.
“With the Mako gas sales arrangements and infrastructure in place, Conrad, together with our partner, Nations, is well positioned to contribute to the region’s growing energy requirements, and is also assessing opportunities to increase gas supply to Batam from its broader West Natuna portfolio.”
Conrad emphasizes that the Mako development remains on budget and on track for first gas in the fourth quarter of 2027, with fabrication and construction activities now progressing across multiple major project workstreams.