Mubadala Energy announces major gas discovery in South Andaman

Mubadala Energy on Tuesday announced a significant gas discovery from the Layaran-1 Exploration well, drilled in South Andaman, about 100 kilometres offshore North Sumatra, Indonesia.

Mubadala Energy is the operator of the South Andaman Gross Split PSC, and this is the first deepwater well operated by the company, drilled to a depth of 4,208 metres in 1,207 metres of water depth.

The well encountered an extensive gas column with a thickness of over 230 metres in an Oligocene sandstone reservoir. A complete data acquisition was conducted, including wireline, coring, sampling and production test (DST). The well successfully flowed over 30mmscf/d of excellent gas quality.

With an 80% working interest in South Andaman, Mubadala Energy is the largest net acreage holder in the area. In line with the company’s gas-biased strategy, the positive outcome from the Layaran-1 discovery will de-risk multi-TCF of prospective gas resources in the area, providing the foundation for future organic growth and additional exploration drilling activities in 2024.

Commenting on this major strategic development, Mansoor Mohamed Al Hamed, CEO of Mubadala Energy, said, “With our strategy to expand our gas portfolio to support the energy transition, this development offers material commercial opportunities and adds momentum to our strategic growth story.

“This is not only a significant development for Mubadala Energy but a huge milestone for Indonesia’s and Southeast Asia’s energy security. We are proud to have achieved this by leveraging our world-class technical and operational capabilities.”

This newly confirmed discovery is the second consecutive successful well for Mubadala Energy in the Andaman area, coming after the success of Timpan-1 in Andaman-II, which itself came after the success of Cengkih-1 in our SK320 in Malaysia. These discoveries add material contingent volume and provide a platform for continued growth for Mubadala Energy in the region.

Mubadala Energy is an international energy company, headquartered in Abu Dhabi. With a diversified portfolio of operated and non-operated assets spanning 11 countries, its primary geographic focus is in the Middle East and North Africa, Russia and Southeast Asia.

Mubadala Energy is a wholly-owned subsidiary of Mubadala Investment Company, which is owned by the Government of Abu Dhabi. The company’s portfolio is around 66 per cent gas, with a working interest production in 2022 of approximately 500,000 barrels of oil equivalent per day.

In line with Mubadala Energy’s commitment to play an active role in the energy transition, the company is expanding across the gas value chain and actively pursuing opportunities in new energy sectors.

Meanwhile Hyundai Motor Company (HMC) and Mubadala Investment Company (Mubadala), an Abu Dhabi-based global sovereign investor, have signed a memorandum of understanding (MOU) to jointly explore potential business opportunities and synergies for future mobility and technologies.

The agreement will allow both parties to jointly invest and share expertise, leveraging the advantages of Mubadala’s investments and Hyundai Motor’s expertise in various fields, including green steel production, green aluminum production and recycling, as well as advanced air mobility (AAM), and infrastructure for electric vehicles. In addition, Hyundai Motor and Mubadala will seek to unlock potential investment opportunities.