2002-Built Jack-up Comes to Asian Yard for MOPU Conversion Ahead of Gas Field Deployment

October 13, 2026 · 12 hours ago

A 24-year-old jack-up will undergo a rig-to-MOPU conversion before it embarks on its upcoming job at a gas development in Southeast Asia.

Singapore-headquartered natural gas player Conrad Asia Energy is breathing new life into an aging offshore asset, with the arrival of a 2002-built jack-up rig at a Southeast Asian shipyard to begin its transformation into a mobile offshore production unit (MOPU). This type of rig repurposing work is seen as a great fit for regional energy developers looking to fast-track production, setting the stage for extensive topsides fabrication and integration before the unit heads out for work at a natural gas development project in Indonesian waters.

Conrad Asia Energy has revealed three important achievements for its Mako gas project in the Duyung production sharing contract (Duyung PSC) in the West Natuna Sea, with its subsidiary, West Natuna Exploration Limited (WNEL), as operator of the asset, diligently working together with its partner, PT Nations Natuna Barat, a subsidiary of PT Nations Petroleum, to deliver these milestones.

Among the three new developments is the arrival of the 2002-built Valaris 104 donor rig, which was acquired from Valaris to serve as the Mako production unit, at PaxOcean's shipyard in Batam, Indonesia, where it will undergo conversion into a MOPU that will enable the production of Mako gas.

The gas sales agreement (GSA) with PT PLN Energi Primer Indonesia (PLN EPI) for the purchase of 100% of Mako’s gas production is now effective, and the gas-in commissioning of the West Natuna Transportation System (WNTS)-Pemping subsea pipeline, which is part of the delivery route for the Mako gas into Batam, has also been executed safely and smoothly, according to Conrad.

The company elaborates that gas delivered through the WNTS will support gas supply reliability and the electricity system in Batam, where power demand is experiencing strong growth, including from the rapidly expanding data centre sector. Conrad and Nations are actively evaluating opportunities to increase gas supply from the Duyung PSC to meet this growing demand.

The Valaris 104 rig was stacked for several years before Valaris sold it as a donor rig for non-drilling, production purposes, which offered a profitable exit strategy for an asset that was inactive in the drilling market, while providing the Mako project developers with a ready-made structural hull.

The conversion of an existing jack-up rig into a MOPU is perceived to significantly accelerate the timeline to first gas production compared to constructing a new production facility. The donor rig completed its transit through the Strait of Hormuz in September, following extensive planning, regulatory coordination, and operational risk management across multiple jurisdictions.