Mubadala Energy boosts Indonesia exposure with major gas discovery

Image courtesy: Mubadala Energy

Mubadala Energy announced on Tuesday a major gas discovery in Indonesia, opening the door to a strengthening of the company’s position in the Southeast Asian country’s energy sector.

The Abu Dhabi-based energy firm said the discovery was from the Layaran-1 Exploration well, drilled in South Andaman, about 100 km offshore of North Sumatra, Indonesia.

“With our strategy to expand our gas portfolio to support the energy transition, this development offers material commercial opportunities and adds momentum to our strategic growth story. This is not only a significant development for Mubadala Energy but a huge milestone for Indonesia’s and Southeast Asia’s energy security,” said Mansoor Mohamed Al Hamed, CEO of Mubadala Energy.

Mubadala Energy is the operator of the South Andaman Gross Split PSC. The well encountered an extensive gas column with a thickness of over 230 meters in an Oligocene sandstone reservoir.

The state-owned energy firm said complete data acquisition, including wireline, coring, sampling and production test, indicated a total discovered volume of more than 30mmscf/d of gas.

With an 80 per cent working interest in South Andaman, Mubadala Energy is the largest net acreage holder in the area.

The Layaran-1 discovery will de-risk multi-TCF of prospective gas resources in the area, providing the foundation for future organic growth and additional exploration drilling activities in 2024.

The discovery is the second consecutive successful well for Mubadala Energy in the Andaman area, following the success of Timpan-1 in Andaman-II, which itself came after success at Cengkih-1 in our SK320 in Malaysia.

The discoveries add material contingent volume and provide a platform for continued growth for the Abu Dhabi energy firm in the region.

Mubadala Energy boosts Indonesia investment

Meanwhile, Mubadala Energy signed an agreement with Indonesia’s state energy company PT Pertamina in July to study and explore potential developments of carbon capture, utilisation and storage (CCUS) facilities in the country.

The deal provides a framework to explore CCUS solutions for Pertamina’s and Mubadala Energy’s existing portfolio of assets in Indonesia through collaborative discussions and evaluation of relevant projects.

It will see the two entities cooperate to conduct joint studies and, potentially, business development activities in this strategic area of carbon mitigation.

Mubadala Energy has been present in Indonesia since 2004, with four operated Production Sharing Contracts (PSC), including the Sebuku PSC, which contains the Ruby gas field and the Andaman I and South Andaman Gross Split PSCs.

The portfolio makes the company the largest net acreage holder in the area, securing the core of the North Sumatra basin for future exploration growth with the potential to unlock a new material gas play.

Read: Mubadala Energy partners with Pertamina to explore CCUS