SKK Migas together with Conrad Asia Energy held a marking ceremony to mark the start of the implementation phase of the Final Investment Decision (FID) for the Mako Gas Field Development in the Duyung Working Area, off the coast of the Anambas Islands, Riau Islands Province, which is operated by West Natuna Exploration Limited (WNEL).
In his remarks, Head of SKK Migas Djoko Siswanto said that the start of the implementation phase of the Mako Gas Field FID was a strategic step in maintaining the continuity of the national gas supply.
"This investment decision shows the strong commitment of the government and KKKS to accelerate the development of potential gas fields. The Mako Gas Field is expected to make a significant contribution to national gas production and support domestic energy needs," he said, quoted Tuesday, March 3.
For information, the Mako Gas Field is now part of a strategic investment developed through cooperation between the government, WNEL as the operator, and PT Nations West Natuna, an entity under the Arsari Group and will become the majority holder of participation rights in the Duyung Block.
The development of this field is strengthened by funding from Bank Negara Indonesia (BNI) so that PT Nations Natuna Barat strengthens the financing structure and project governance to ensure the sustainability of the Mako Gas Field development to the first production phase.
As part of efforts to ensure certainty of gas commercialization, WNEL has signed a Gas Sales Agreement (GSA) with PT PLN Energi Primer Indonesia (PLN EPI) as an offtaker.
The signing of the GSA is an important foundation in supporting the project's feasibility while ensuring the absorption of Mako Field gas production for national power plant needs.
Djoko emphasized that SKK Migas would continue to monitor the implementation of the project so that it runs according to plan, on time, at the right cost, and prioritizes aspects of work safety and compliance with regulations.
The development of the Mako Project enters a series of major phases ranging from Pre FID in 2025 to achieving First Gas in Q4 2027.
Activities include engineering, procurement, construction, drilling, offshore installation, to commissioning and start-up. This project is targeted to operate according to schedule to support national energy needs.
Chairman of Conrad Asia Energy, Peter Botten, said that the FID of the Mako Gas project could be realized thanks to the collaboration between the Duyung Working Area KKKS, SKK Migas and related government agencies, PLN EPI as an offtaker, as well as national partners who also strengthened the project structure.
Meanwhile, the CEO of the Arsari Group, Hashim S. Djojohadikusumo, stated that his party's involvement in the development of the Mako Gas Field is part of a long-term commitment to support national energy security.
"With long-standing and proven experience in the oil and gas sector and solid financing support, we are optimistic that this project can be carried out professionally, on time, and make a real contribution to state revenues and strengthening Indonesia's energy resilience," said Hashim.
The Mako project entered a series of main phases ranging from Pre-FID in 2025 to the target of First Gas in November 2027.
Activities include engineering, procurement, construction, drilling, offshore installation, to commissioning and start-up.
The Mako Gas Field is expected to start producing (onstream) in the fourth quarter of 2027 and is expected to have a positive impact on the sustainability of Indonesia's upstream oil and gas sector.
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