Abu Dhabi’s Mubadala signs gas contract with Indonesia

Abu Dhabi’s Mubadala Petroleum has signed a production sharing contract with the Indonesian government for the Andaman 1 area off the coast of North Sumatra.

The firm is operator of the block and a partner on Andaman II, which is operated by Premier Oil.

The two sites are located offshore of Aceh, where Mubadala has been conducting joint study deals since 2011.

The sharing contracts have the potential to unlock new gas deposits for domestic consumption in North Sumatra and in the long term exports to regional markets, Mubadala said.

The company was committed to conducting sub surface studies to acquire 3D seismic information over the next three years.

“The operated Andaman I PSC and our interest in the Andaman II PSC, marks the further extension of our Indonesia portfolio with a new high impact growth hub,” said Mubadala Petroleum CEO Bakheet Al Katheeri.

“These new exploration blocks support our growth strategy of finding and, if successful, developing gas for Indonesia’s growing market while it has the potential to deliver significant organic growth opportunities for our existing Indonesian business in the longer term.”

Mubadala said last month it had finalised investment in its first Malaysian gas project alongside Petronas Carigali and Sarawak Shell Berhad.

Read: Abu Dhabi’s Mubadala finalises investment in Malaysia gas field