Mubadala Petroleum has announced that it has signed a production sharing contract (PSC) for Andaman I, an offshore exploration block awarded by the Government of Indonesia.
Mubadala Petroleum is the operator of the Andaman I and a partner in the Andaman II, operated by Premier Oil, which was also signed last week.
Andaman I and II are located in the underexplored but proven North Sumatra basin offshore Aceh, a region that Mubadala Petroleum has been involved in since 2011 through joint study agreements.
The PSCs have the potential to unlock a new material gas play for domestic consumption in North Sumatra and also long term export to regional markets.
The work commitment for the Andaman I exploration block is to conduct sub surface studies and to acquire 3D seismic in the first three-year term.
Dr Bakheet Al Katheeri, Mubadala Petroleum’s CEO, said: "The operated Andaman I PSC and our interest in the Andaman II PSC, mark the further extension of our Indonesia portfolio with a new high impact growth hub.
"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.”
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.