Conrad Asia Energy (ASX:CRD) said its unit West Natuna Exploration formally signed a binding contract with PT Duta Marine/PT Pakarti Tirtoagung for the provision of a leased mobile offshore production unit to support the development of the Mako gas field, according to a Monday Australian bourse filing.
The contract includes the sourcing of a donor jack-up drilling rig and conversion to a mobile offshore production unit in Batam, with a raw gas design capacity of 172 million standard cubic feet per day.
The contract requires payment of $4 million for the purchase of a donor rig and a $26 million facility equipment down payment. The bareboat charter of the vessel is until January 2037, with options for up to five annual extensions thereafter.
The company also formally signed a binding contract with PT PAL Indonesia for the provision of an engineering, procurement, construction, and transport of the conductor support frame, according to a separate filing.
West Natuna Exploration is the operator of the Duyung production sharing contract (PSC) in the Natuna Sea, offshore Indonesia.
Conrad Asia Energy's shares rose past 2% in recent trading on Monday.