Mubadala Completes Indonesian Farm Out

Mubadala Petroleum has completed the farm out of a 20% participating interest in each of the Andaman I and South Andaman production-sharing contracts (PSCs) to Premier Oil following Indonesian government approvals, it said January 21.

Mubadala, as the operator, has an 80% participating interest in each of the two blocks, with Premier Oil holding the remaining 20%. Both the blocks are 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. Mubadala Petroleum is also a partner with a 30% participating interest in the Andaman II block.

“With participating interests in these three adjacent blocks, Mubadala Petroleum is the largest net acreage holder in the area, securing the core of the underexplored but proven North Sumatra basin offshore Aceh for future exploration growth,” it said.

A third-party 3D seismic acquisition programme across the Andaman I, Andaman II and South Andaman acreage was completed in 2019. Initial analysis of the 3D data is in progress, the company said.