Mubadala Energy reveals massive offshore Indonesia gas discovery

Mubadala Energy, the oil and gas unit of Abu Dhabi’s Mubadala Investment Company, yesterday announced a substantial gas discovery off Indonesia.

Mubadala Energy’s latest find at the Tangkulo-1 exploration well follows the company’s major deep-sea gas reserve discovery in Indonesia’s South Andaman block last year.

The Tangkulo-1 exploration well is located about 65km offshore from North Sumatra.

Despite limitations imposed by testing facilities, the well’s estimated capacity is between 80 and 100 million standard cubic feet a day and more than 2,000 barrels of condensate, Mubadala Energy said.

Through the Layaran-1 exploration well, the company had identified the potential for more than 6 trillion cubic feet (tcf) of gas-in-place.

“When added to our recent success at Layaran-1, this game-changing discovery promises to transform Indonesia’s and South-East Asia’s energy landscape and demonstrates that South Andaman is one of the world’s most exciting energy plays,” said Mansoor Al Hamed, chief executive of Mubadala Energy.

He also expressed confidence about realising “the full potential” of the block.

With an 80 per cent working interest in South Andaman, Mubadala Energy is the largest net acreage holder in the area.

The latest find adds to the significant volume of potential resources and provides a platform for the company’s “continued organic growth in the region through additional exploration and appraisal activities”, Mubadala Energy said.

“Tangkulo-1 is an important pillar in the cluster’s development story, with the discovery unlocking further potential in the southern part of the block and indicating an additional multi- (trillion cubic feet) of prospective gas resource in nearby structures.”

Mubadala Energy, which was previously known as Mubadala Petroleum, has been operating in Indonesia since 2004. It has assets and operations spanning 11 countries.

Several countries, including Indonesia, are seeking to substitute coal with natural gas, which is considered a cleaner fossil fuel compared to coal.