June 5, 2026

Conrad Asia Energy, via its subsidiary West Natuna Exploration Limited (WNEL), has signed a binding contract with PT Pertamina Drilling Services Indonesia through the PDSI–ADES Consortium for the provision of a jack-up drilling rig to support development of the Mako gas field offshore Indonesia.

WNEL is the operator of the Duyung Production Sharing Contract (PSC) in the Natuna Sea.

The contract covers the deployment of the Admarine 502 independent-leg cantilever jack-up drilling rig for drilling six development wells and installation of a Conductor Support Frame. The agreement has a firm term of 180 days, with options to extend, and is expected to commence in the second quarter of 2027.

A formal signing ceremony was attended by representatives of WNEL, PT Pertamina Drilling Services Indonesia and PT ADES Drilling Indonesia.

“This agreement represents a critical milestone for the Duyung PSC JV as we advance toward drilling at Mako. Securing a high-specification jack-up rig on favorable terms positions the Company to execute its upcoming development program efficiently,” said Miltos Xynogalas, Conrad Managing Director and Chief Executive Officer.

The Mako project is planned to initially comprise six development wells tied back to a leased Mobile Offshore Production Unit (MOPU).

Gas will be transported through an approximately 59-km, 18-inch pipeline to the KF platform in the adjoining Kakap PSC before being delivered through the West Natuna Transportation System pipeline to the Indonesian domestic market.

Total capital expenditure to first gas is estimated at $320 million on a 100% basis, with WNEL's 25% share amounting to approximately $80 million. An additional provision of around $35 million has been allocated for owner-supplied equipment to be novated to the MOPU provider and for potential MOPU down payments.

The company said annual operating costs, including pipeline transportation costs, are targeted at $70 million to $80 million on a 100% basis.

The rig contract marks another step forward for the Mako gas development. In January, Conrad announced that the Admarine 502 would be used for the drilling campaign, while the company had previously indicated that the development would involve six wells aimed at bringing the offshore gas field into production.

The project is located within the Duyung PSC in Indonesia's Natuna Sea.