Abu Dhabi – Mubasher: Mubadala Petroleum, a wholly owned subsidiary of Mubadala Investment Company, announced signing a production sharing contract (PSC) for Andaman I, an offshore exploration block in Indonesia.
The UAE-based petroleum firm was awarded Andaman I by the Indonesian government in the 2017 Licence Round, according to the company's statement.
Under the deal, Mubadala Petroleum will be the main operator of the block and a partner in the Andaman II, operated by Premier Oil.
The two projects of Andaman I and II are located in the underexplored area of North Sumatra basin offshore Aceh, which has proven reserves, the Abu Dhabi-owned firm said.
Mubadala Petroleum has been operating in this region since 2011 via mutual study agreements.
The PSCs “have the potential to unlock a new material gas play for domestic consumption in North Sumatra and indeed long-term export to regional markets,” Mubadala Petroleum noted.
The work commitment for the Andaman I exploration block involves conducting sub surface and 3D seismic studies in the first three-year term, the oil and gas developer highlighted.
“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 Petroleum’s CEO Bakheet Al Katheeri commented.
