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Tue 21 Jan 2020 02:20 PM

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Mubadala unit offloads stake in Indonesian offshore gas blocks

Mubadala Petroleum has announced that it has completed the farmout of a 20% interest in gas blocks to Premier Oil

Mubadala unit offloads stake in Indonesian offshore gas blocks

Dr Bakheet Al Katheeri, Mubadala Petroleum’s CEO.

Mubadala Petroleum has announced that it has completed the farmout of a 20 percent participating interest in offshore gas blocks in Indonesia.

The deal covers the Andaman I and South Andaman Gross Split Production Sharing Contracts (PSCs) and sees Premier Oil acquiring the stakes following Indonesian Government approvals.

Following completion, Mubadala Petroleum, as operator, has 80 percent participating interest in each of the blocks, with Premier Oil holding the remaining 20 percent.

Mubadala Petroleum is also a partner with a 30 percent participating interest in the Andaman II Gross Split PSC, which is operated by Premier Oil.

Farmout deals, which are commonplace in the global petroleum industry, see a licence holding party give another party a percentage of that licence in exchange for services.

With participating interests in these three adjacent blocks, Mubadala Petroleum said it is the largest net acreage holder in the area, securing the core of the underexplored but proven North Sumatra basin offshore Aceh for future exploration growth.

A third party 3D seismic acquisition program across the Andaman I, Andaman II and South Andaman acreage was completed in 2019. Initial analysis of the 3D data is in progress.

Dr Bakheet Al Katheeri, Mubadala Petroleum’s CEO, said: "The completion of this farmout is another important step for Mubadala Petroleum and for the exploration of the Andaman blocks offshore Aceh, and supports Mubadala Petroleum’s growth strategy in Indonesia."

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