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Mubadala Petroleum awarded Indonesia offshore block

To start 3D seismic study in West Sebuku block

Gulf News

Abu Dhabi:

Abu Dhabi-based Mubadala Petroleum said on Thursday, in partnership with Inpex Corporation, it has been awarded the production sharing contract (PSC) for the offshore West Sebuku block in Indonesia.

“The partners anticipate concluding detailed terms of the PSC for the West Sebuku block in the near future.

Mubadala Petroleum will be the operator with a 75.5 per cent interest, with Inpex holding the remaining 24.5 per cent interest,” Mubadala said in a statement.

Speaking to Gulf News from Singapore, a spokeswoman for Mubadala Petroleum said: “This is an exploration block that we have been awarded. We are starting off with 3D seismic study to see whether there’s potential in the block.”

The West Sebuku block is located adjacent to the Sebuku PSC where Mubadala Petroleum is also the operator, through its affiliate Pearl Oil (Sebuku) Limited, and is developing the Ruby gas field in partnership with Inpex and Total. First gas is expected from Ruby in the latter part of 2013.

“The Ruby field will supply about 80 million cubic feet of gas per day. Together with our partners, Mubadala Petroleum will invest about $500 million in the development of Ruby field,” the Mubadala Petroleum spokeswoman added.

She said across its portfolio of energy assets globally, Mubadala Petroleum’s current total production is estimated at 400,000 barrels per day of oil equivalent.

“The award of the West Sebuku PSC is a further extension to Mubadala’s Indonesia portfolio. It supports our strategy of finding and, if successful, developing gas for Indonesia’s growing domestic market and is located in close proximity to the infrastructure we are installing on the Ruby field,” commented Steve Peacock, Mubadala Petroleum’s chief operating officer.

“The Ruby field development is progressing as per schedule,” Mubadala Petroleum said, adding a 312 kilometer-long pipeline that will connect the Ruby platform to the Senipah onshore gas plant, operated by Total, is now complete.

“Construction of the two Ruby platforms, a tripod wellhead platform (WHP) and a four-leg production platform (PQP) are nearing completion. Offshore installation and commissioning will commence in the second quarter 2013. Once on stream, gas from Ruby will be delivered to the buyer, PT Pupuk Kalimantan Timur, an Indonesian fertilizer company in support of the National Food Security Programme,” said Mubadala Petroleum.