Following a final investment decision (FID) in March 2026, West Natuna Exploration, as the operator of the Duyung production sharing contract (PSC) with a 76.5% stake, and its partners, Empyrean Energy ( 8.5%) and Coro Energy (15%), set the Mako gas project development activities in motion with letters of award covering more than $280 million of capital contracts, constituting over 80% of the total capital costs.

As a result, letters of award have been issued for the drilling rig, subsea, umbilicals, risers, flowlines (SURF), engineering, procurement, construction, and installation (EPCI), conductor support frame (CSF), EPCT, and all long lead items. The operator has confirmed that several milestone payments have already been made to the contractors, with costs remaining in line with previous guidance.

The commercial development of the project in the Riau Islands Province of Indonesia will be done in cooperation with the Indonesian government, WNEL as operator, and PT Nations Natuna Barat (NNB), an entity under Arsari Group, which is expected to become the majority participating interest holder in the Duyung PSC, following a farm-out deal from November 2025.

The Mako gas project will initially comprise six development wells tied back to a leased mobile offshore production unit (MOPU), with a design capacity of 172 mmscfd. The sales gas will be transported via an approximately 59-kilometer, 18-inch pipeline to the KF platform in the adjoining Kakap PSC, then through the WNTS pipeline for delivery to the Indonesian domestic market.

The supply will be facilitated via a new spur pipeline from the WNTS to Pemping Island, Riau Province, which is being constructed by PLN EPE, a wholly owned subsidiary of PLN Persero. The gas allocation volumes and transportation tariffs within the WNTS have been agreed with SKK Migas and the WNTS joint venture.

According to project partners, a formal gas transportation agreement is expected to be executed in the coming weeks. The total capital expenditure to first gas is estimated at $320 million. The Mako gas project is fully funded, including a substantial contingency, and remains on track for first gas in Q4 2027.

Under its agreement with Conrad, Empyrean is entitled to 8.5% of all cash payments to WNEL. Located approximately 100 kilometers to the north of Matak Island and 400 kilometers northeast of Batam, the Mako development is described to have a proven reservoir, infrastructure access, and a clear timeline.

Gaz Bisht, Empyrean’s Interim CEO, commented: “Empyrean is pleased to note the rapid advancement in development activities at the Mako gas field, with significant procurement activity being undertaken during the March quarter, all fully funded under the previously announced carry loan agreement.

“Importantly, first production from Mako remains on track to commence late next year, a landmark milestone for all parties involved.”

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