Mubadala Petroleum signs agreement for Premier Oil to secure a 20% participating interest in two offshore gas blocks
Mubadala Petroleum has announced that it has signed an agreement with Premier Oil for a 20 percent participating interest in two Indonesian offshore gas blocks.
The deal relates to the Andaman I and South Andaman gross split production sharing contracts (PSCs) which are operated by Mubadala Petroleum.
Completion of the transaction is subject to customary conditions including government approvals, a statement said.
The Andaman I and South Andaman PSCs are located in the underexplored but proven North Sumatra basin offshore Aceh.
Mubadala Petroleum is also a partner with a 30 percent participating interest in the Andaman II PSC which is operated by Premier Oil.
With participating interests in these three adjacent blocks, Mubadala Petroleum is the largest net acreage holder in the area, securing the core of the North Sumatra basin for future exploration growth.
Mubadala said the PSCs have the potential to unlock a new material gas play for domestic consumption in North Sumatra and potentially long-term export to regional markets.
Dr Bakheet Al Katheeri, Mubadala Petroleum’s CEO, said: "With this farmout, Mubadala Petroleum will extend its partnership with Premier Oil for the exploration of the Andaman blocks offshore Aceh. Both partners have a strong commitment to this new high impact growth area which supports Mubadala Petroleum’s growth strategy of finding and, if successful, developing gas for Indonesia’s growing markets.”For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.