Arsianews, Jakarta – Mubadala Petroleum signed the Gross Split Production Sharing Contract (PSC) for South Andaman with the Indonesian Government, pursuant to the 2018 Indonesian Third Direct Tender Round.
Following the signing, Mubadala Petroleum is now operating both the South Andaman and the adjacent Andaman I PSC and a partner in the Andaman II PSC.
The South Andaman PSC is located in the underexplored but proven offshore field in Aceh. With participating interests now in 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 Petroleum has been involved in the region 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 indeed long-term export to regional markets.
The work commitment for the South Andaman PSC is to conduct sub surface studies and to acquire 3D seismic, in the first three-year term.
Bakheet Al Katheeri, Mubadala Petroleum’s chief executive officer, said that the South Andaman PSC is Mubadala’s third offshore block in Aceh under the gross split regime and marks a further extension of it’s Indonesia portfolio in this high potential region.
“Our successful bid for South Andaman underscores our commitment in this new high impact growth area together with Andaman I and II and supports our growth strategy of finding and, if successful, developing gas for Indonesia’s growing market.”
Al Katheeri said, Mubadala look forward to completing the seismic work program across all three blocks as soon as possible before taking their evaluation to the next stage