Execution of Mako Offshore Drilling Rig Contract
Empyrean Energy PLC has announced the formal execution of a binding contract for a jack-up drilling rig, the Admarine 502, to support the development of the Mako Gas Field in Indonesia. The contract, with a firm period of 180 days and options to extend, is expected to commence in Q2 2027 and covers the drilling of six development wells and the installation of the Conductor Support Frame. The total estimated capital expenditure to first gas remains US$320 million on a 100% basis, with the company confident in the asset's value delivery.
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Conrad Asia Energy Ltd ("Conrad", (ASX:CRD)) today advised that its majority-owned subsidiary, West Natuna Exploration Limited ("WNEL"), has formally executed a binding contract with PT Pertamina Drilling Services Indonesia ("Pertamina Drilling") through the PDSI - ADES Consortium for the provision of a jack-up drilling rig to support the development of the Mako Gas Field.
Key Contract Highlights
- Rig Type: Independent-leg cantilever jack-up drilling rig.
- Rig Name: Admarine 502.
- Scope of Work: Drilling of six development wells and installation of the Conductor Support Frame (CSF)
- Contract Term: Firm period of 180 days, with options to extend.
- Day Rate: Competitive market rate consistent with prevailing regional conditions.
- Commencement Date: Expected in Q2 2027.
A formal signing ceremony was held at Millennium Centennial Centre 18th floor, office of the Consortium PT Pertamina Drilling Services Indonesia (PT PDSI) - PT ADES Drilling Indonesia, with WNEL represented by Danial Murtadho (WNEL General Manager), PT PDSI represented by Avep Disasmita (President Director), and PT ADES Drilling Indonesia represented by Khalid Abdelmuneim Khider Ahmed (Asia Regional Director). In attendance also were the Management team of the three companies.
The Mako gas development plan has been structured as initially comprising six development wells tied back to a leased Mobile Offshore Production Unit ("MOPU"). Sales gas will be transported via an approximately 59 km 18-inch pipeline to the KF platform in the adjoining Kakap PSC, then through the WNTS pipeline for delivery to the Indonesian domestic market.
As advised previously, total capital expenditure to first gas is estimated at US$320 million (100% basis).
Empyrean CEO and Technical Director, Gaz Bisht, commented:
"This is the moment Empyrean shareholders have been waiting for. A binding rig contract is not a plan - it is a commitment, and it signals to the market that the Mako Gas Field is moving to drill.
We have a world-class discovered gas resource, a contracted jack-up rig, a clear development programme of six wells, and a pathway to market through established Indonesian domestic gas infrastructure. The remaining work is execution. With over US$320 million of development capital underpinned by a contracted drilling schedule and a Q2 2027 commencement date, I am confident that Mako will deliver the value this asset has always promised. Today is a good day for Empyrean."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.