The blocks involved in the deal are located in the North Sumatra basin in the South Andaman Sea
Image: Mubadala Petroleum to farm out 20% stakes each in the Andaman I and South Andaman blocks to Premier Oil. Photo: courtesy of Mubadala Petroleum.
Mubadala Petroleum has agreed to farmout 20% stake each in the Andaman I and South Andaman gross split production sharing contracts (PSCs), offshore Indonesia to Premier Oil for an undisclosed price.
The UAE-based company, which is a fully-owned subsidiary of Abu Dhabi government-owned Mubadala Investment Company, is the operator of the Andaman I and the adjacent South Andaman PSCs.
Both the Andaman I and South Andaman blocks are located offshore Aceh within the South Andaman Sea gas play fairway, which is directly near the existing Andaman II acreage of the UK-based Premier Oil.
The two blocks are contained in the North Sumatra basin, which is underexplored but proven, said Mubadala Petroleum. The company also has a 30% participating stake in the Andaman II PSC, operated by Premier Oil.
Earlier this year, a 3D seismic acquisition programme across the Andaman I, Andaman II and South Andaman blocks was completed, which is planned to be used to mature the prospect inventory identified on the previously collected 2D data.
Mubadala Petroleum with participating stakes in the three adjacent blocks claims to be the largest net acreage holder in the region. The company said that the PSCs can potentially open up a new material gas play for domestic consumption in the North Sumatra region and also give way to possible long-term export to regional markets.
Mubadala Petroleum CEO Bakheet Al Katheeri 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.”
The closing of the farmout deal is subject to government approvals and other customary conditions.
Operations of Mubadala Petroleum in Indonesia
In Indonesia, Mubadala Petroleum operates a total of four offshore PSCs, which also includes the Sebuku PSC containing the producing Ruby gas field, and the West Sebuku PSC. Both the Sebuku and West Sebuku blocks are located in Makassar Strait.
In February, the UAE-based oil and gas company alongside PTTEP Energy Development Company Limited (PTTEP ED), signed the PSC for Block G1/61 offshore Thailand, which contains the producing Erawan gas field.