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Mubadala Energy has secured a major exploration and production contract in Indonesia, strengthening the Abu Dhabi-based company’s gas-focused strategy in the country.
The company was awarded the Southwest Andaman exploration Production Sharing Contract (PSC) under Indonesia’s Gross Split scheme, in which contractors fund all operational and capital expenditure.
Mubadala Energy will hold a 100% participating interest in the block and operate it. The acreage lies immediately adjacent to the company’s existing Andaman holdings.
The company, which has been active in Indonesia since 2004, has recorded notable drilling success in the region, including the landmark Layaran-1 and Tangkulo-1 discoveries in South Andaman.
With the new award, Mubadala Energy’s Andaman portfolio now comprises four blocks: South Andaman, Central Andaman, Andaman II and Southwest Andaman.
The first exploration well in the Southwest Andaman block is expected to be drilled during the second exploration phase, between years four and six.
Mubadala Energy is wholly-owned subsidiary of Mubadala Investment Company, which is owned by the Government of Abu Dhabi.
(Writing by Brinda Darasha; editing by Daniel Luiz)
