Mubadala Energy has secured a new exploration block in Southwest Andaman, consolidating its position in one of the most promising deepwater gas basins in Southeast Asia.
A strategic contract in Indonesia
In this context, the Abu Dhabi-based company announced the award of a Production Sharing Contract (PSC) under Indonesia’s gross split scheme. The block was awarded by the Direktorat Jenderal Minyak dan Gas Bumi (DG MIGAS) as part of the 2025 Second Licensing Round.
Furthermore, Mubadala Energy will operate the asset with a 100% stake, reinforcing its role as a key player in the region’s upstream segment.
Expansion of exploration in Andaman
On the other hand, the new block is located adjacent to other areas already operated by the company, including South Andaman, Central Andaman, and Andaman II. This geographical continuity strengthens its consolidation strategy in the basin.
Likewise, the award is the result of a technical process initiated in 2022, followed by a joint study agreement in 2023 and a formal bid submitted in 2025.
Gas potential and exploration progress
From a geological standpoint, the Southwest Andaman area extends a proven system that has supported recent discoveries such as Layaran-1 and Tangkulo-1. These finds have confirmed resources of several trillion cubic feet of gas.
In line with these developments, the company plans to move toward the development of its assets with the goal of achieving first gas before the end of 2028.
Next steps in offshore exploration
Looking ahead, the first exploratory well in the new block is planned for the second phase of the program, between the fourth and sixth years. This stage will depend on the acquisition and interpretation of 3D seismic data.
Meanwhile, Mubadala Energy will continue to collaborate with agencies such as DG MIGAS and SKK Migas to maximize the asset’s value.
Regional leadership in exploration
Currently, the company’s portfolio in Andaman spans five blocks, positioning it as one of the most active explorers in the region.
Finally, this move reinforces Mubadala Energy’s strategy focused on gas as a key resource and on the development of offshore assets that contribute to Indonesia’s energy security.
Source: Mubadala Energy
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