Mubadala Energy expands gas hunt with new Indonesia block

Dubai: Mubadala Energy has secured a new exploration block in Indonesia’s Andaman Sea, tightening its hold on one of Southeast Asia’s most closely watched deepwater gas regions.

The Southwest Andaman Production Sharing Contract was awarded under Indonesia’s Gross Split scheme, giving the Abu Dhabi-based company full ownership and operatorship of the block. The acreage sits next to its existing portfolio in the basin, extending a position that has grown steadily over the past few years.

Expansion follows a clear exploration strategy

The award reflects a multi-year push into the Andaman basin, with work on the opportunity beginning in 2022 and progressing through technical studies and bid submissions before the final award.

Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, said the latest addition builds on earlier discoveries in the area.

“The award of the Southwest Andaman block is a testament to our team's technical conviction, expertise in deep water exploration, and growth mindset. We have an unrivalled understanding of the Andaman basin and this award builds on our existing multi-TCF strategic discoveries at Layaran and Tangkulo and Timpan.”

He added that the company remains focused on unlocking gas resources that can support long-term demand.

“We are fully committed to unlocking the region's vast gas potential in line with our growth strategy and to support Indonesia's energy security priorities.”

Why the Andaman basin matters

The basin has emerged as a key frontier for gas exploration, with recent drilling pointing to significant reserves that could feed both domestic demand in Indonesia and wider regional markets.

Southwest Andaman sits along the same geological trend that supported earlier discoveries, strengthening expectations that further drilling could deliver similar results. The company is working towards first gas from its South Andaman developments before the end of 2028, placing the new block within a broader development timeline.

Next phase of exploration

Initial drilling at the new block is expected in the second exploration phase, following detailed analysis of newly acquired seismic data. The timeline allows the company to refine targets and align the programme with ongoing work across its wider Andaman portfolio.

Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, said the award signals continued confidence from Indonesian authorities.

“This award marks another important chapter in our Andaman story and reflects the trust that the Indonesian government continues to place in Mubadala Energy as a long-term, committed partner.”

He added that the focus now shifts to execution and collaboration.

“Southwest Andaman is a strategically significant addition to our core Andaman area, and we are excited about the prospectivity it brings. As we advance our work program, we look forward to collaborating with DG MIGAS, SKK Migas, and all our stakeholders to realize the full potential of this block for Indonesia's energy future and the communities we serve.”