Mubadala Energy strengthens position in Andaman Sea exploration

Mubadala Energy, the Abu Dhabi-based international oil and gas firm, has expanded its activities in the Andaman Sea, securing a significant foothold in Indonesia’s energy landscape. The company, alongside its partner Harbour Energy, was awarded the Central Andaman licence by Indonesia’s oil and gas regulator, MIGAS. This move marks a strategic boost for Mubadala, as it increases its influence in one of Southeast Asia’s most promising offshore basins.

Mubadala now holds a 40% stake in the Central Andaman block, with Harbour Energy leading operations with a 60% interest. The award followed the Indonesian government’s recent licensing round, where international energy firms competed for access to the region’s untapped potential. The Andaman Sea, known for its deep-water prospects, has attracted increased interest due to its significant reserves of hydrocarbons.

Building on this momentum, Mubadala has also completed an extensive drilling campaign in the South Andaman area. The campaign appraised multiple wells, including the successful Layaran and Tangkulo discoveries. These results highlight the Andaman Sea’s potential, with estimates suggesting multi-trillion cubic feet (TCF) of gas in place. The appraisal, which involved advanced deep-water drilling technologies, was seen as a major win for the company, further strengthening its long-term energy strategy in Southeast Asia.

Adnan Bu Fateem, Mubadala Energy’s Chief Operating Officer, emphasized the significance of the Central Andaman block, noting that the successful bid will open further opportunities in the region. Bu Fateem underscored the company’s operational expertise and familiarity with the basin as key factors that will enable Mubadala to maximize the area’s energy potential. As Indonesia continues to focus on energy security and the transition to cleaner energy sources, this development could play a vital role in meeting the country’s growing energy demands.

In addition to resource extraction, Mubadala Energy is poised to contribute to Indonesia’s broader energy strategy, which includes a push for gas as a transitional fuel. Gas, seen as a cleaner alternative to coal, remains central to Indonesia’s energy mix, and developments in the Andaman Sea could become crucial to maintaining supply.

Abdulla Bu Ali, President Director for Indonesia at Mubadala Energy, highlighted the success of the South Andaman drilling campaign, stressing that the safe and efficient completion of the operation was an important milestone. He reiterated that Mubadala’s findings would play a pivotal role in supporting both Indonesia’s energy needs and its transition to cleaner sources. Bu Ali added that the resources discovered during the campaign could become a cornerstone of Southeast Asia’s gas supply.

Looking forward, Mubadala is already planning its next steps in turning the South and Central Andaman blocks into production hubs. The company is formulating strategies to expedite the development of these fields, with a focus on delivering gas to regional markets. If fully developed, these assets could significantly alter the energy map of Southeast Asia, with implications for both domestic consumption and export to neighboring countries.