Mubadala Inks Indonesia PSC

Mubadala Petroleum has signed a production-sharing contract with Indonesian government for Andaman I, it said April 9. Abu Dhabi-based Mubadala is the operator of the Andaman I PSC and a partner in the Andaman II PSC, operated by Premier Oil, which was signed last week, Mubadala said.

The Andaman I and II PSCs are adjacent in the North Sumatra basin offshore Aceh. “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. The work commitment for the Andaman I exploration block is to conduct sub surface studies and to acquire 3D seismic, in the first 3 year term,” the company 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,” Bakheet Al Katheeri, Mubadala CEO, said.

Late last month, Mubadala Petroleum and partners Malaysian state Petronas and Sarawak Shell took the final investment decision for the Pegaga gas field development in Block SK 320, offshore Malaysia and expect to invest over $1bn in the project.