Conrad Asia Energy has transferred the tanker Valaris 104, built in 2002, to Batam Port in Indonesia. This tanker is intended to be converted into a Floating Production Unit (MOPU) for the Mako gas project, and this transformation is expected to help accelerate gas production in the project.
Details of the Mako Project
The Mako gas project is located in the Duyung Production Sharing Contract (PSC) in the West Natuna Sea. Conrad Asia Energy, in collaboration with its subsidiary, West Natuna Exploration Limited (WNEL), and its partner, PT Nations Natuna Barat, is aiming to achieve several significant milestones in this project. One of these milestones is the successful transfer of the tanker Valaris 104 to PaxOcean Port in Batam, where the tanker will be converted into a Floating Production Unit.
Gas Sale Agreement and Energy Supply
A Gas Sale Agreement (GSA) with PT PLN Energi Primer Indonesia (PLN EPI) for the purchase of 100% of Mako's gas production has been officially implemented. Additionally, the West Natuna Transportation System (WNTS) has safely and smoothly reached the gas commissioning stage. Conrad has stated that the gas produced from this system will contribute to the sustainable energy needs in Batam.
Conrad Asia Energy has emphasized that this project remains within the specified budget and is on schedule for the first gas production in the fourth quarter of 2027. The conversion of the tanker Valaris 104 into a Floating Production Unit significantly reduces the time required to commence gas production.
Logistical and Security Challenges
The transfer of this tanker required careful planning, legal coordination, and management of operational risks across multiple jurisdictions. Peter Batten, CEO of Conrad, described this transfer as a significant logistical achievement and emphasized the importance of this project in providing sustainable energy in the region.
Conrad and its partner, Nations, are exploring opportunities to increase gas supply from the Duyung PSC to meet the growing energy demand in the region. In particular, electricity demand in Batam is rising due to the rapid growth of the data center sector.
The conversion of the tanker Valaris 104 into a Floating Production Unit (MOPU) means that the Mako project can soon reach gas production stage and respond to the increasing energy demand in the region. Given these developments, Conrad Asia Energy is expected to become a key player in providing sustainable energy in the region.
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