Mubadala Energy secures new gas block off Indonesia coast

Mubadala Energy, a wholly owned unit of Abu Dhabi sovereign wealth fund Mubadala, has secured a new natural gas concession in Indonesia’s Andaman Sea, with the first exploration well expected to be drilled in the next four to six years. 

The southwest Andaman exploration block was awarded by Direktorat Jenderal Minyak dan Gas Bumi, owned by Indonesia’s energy ministry. 

Mubadala Energy will hold a 100 percent participating interest and operate the block. The first exploration well will be drilled following completion and full interpretation of new 3D seismic data, the company said in a statement. 

No financial details were given.

The company’s Andaman portfolio now spans five blocks: south Andaman, central Andaman, Andaman I, Andaman II and southwest Andaman. 

Collectively, the blocks position Mubadala Energy as the “largest and most active explorer” in the Andaman deepwater gas basin, the statement said.

Mubadala Energy expects to produce first gas before the end of 2028.

In December Mubadala Energy and PLN Energi Primer Indonesia, a subsidiary of state-owned utility company PLN, signed a “heads of agreement” deal for gas supply from a field in the Andaman Sea.

Indonesia’s energy sector, particularly electricity, is expected to grow at an average annual rate of 5.3 percent until 2034, necessitating infrastructure development and diversification of supply sources to ensure long-term security.

Mubadala Energy’s portfolio is 70 percent gas, with production capacity of more than 450,000 barrels of oil equivalent per day across 11 countries, according to the company’s website.

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