Mubadala Inks Indonesia PSC

Abu Dhabi-based Mubadala Petroleum has signed a gross split production sharing contract (PSC) with Indonesian government for the South Andaman block, it said February 18.

The block has been awarded under the 2018 Indonesian Third Direct Tender Round. Following the signing, Mubadala Petroleum is the operator of both the South Andaman and the adjacent Andaman I PSC and a partner in the Andaman II PSC.

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

According to Mubadala, the PSCs have the potential to unlock a new material gas play for domestic consumption in North Sumatra and long-term export to regional markets. The work commitment for the South Andaman PSC is to conduct sub surface studies and to acquire 3D seismic, in the first three-year term, it said.

In Indonesia, the company been present since 2004 and operates four offshore PSCs.