Mubadala Energy has secured a new exploration block in Indonesia’s Andaman Sea, reinforcing its position in one of Southeast Asia’s most closely watched deepwater gas regions.
The Southwest Andaman Production Sharing Contract (PSC) was awarded under Indonesia’s Gross Split scheme by Direktorat Jenderal Minyak dan Gas Bumi (DG MIGAS), granting Mubadala Energy full ownership and operatorship of the block.
The acreage lies adjacent to the company’s existing assets in the basin, further consolidating a portfolio that has expanded steadily in recent years.
The award reflects a multi-year strategic push into the Andaman Basin. Work on the opportunity began in 2022, progressing through technical evaluations, a Joint Study Agreement, and competitive bid submissions before the final award.
Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, said that, “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 unrivaled understanding of the Andaman basin, and this award builds on our existing multi-TCF strategic discoveries at Layaran, Tangkulo, and Timpan. 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 Andaman basin has emerged as a key frontier for gas exploration, with recent drilling indicating significant reserves capable of supporting both domestic demand in Indonesia and wider regional markets.
The Southwest Andaman block sits along the same geological trend that underpinned earlier discoveries, strengthening expectations of further success.
Mubadala Energy is already advancing its South Andaman developments, targeting first gas before the end of 2028, positioning the new block within a broader development roadmap.
Next phase of exploration
Initial drilling at Southwest Andaman is expected during the second exploration phase, following detailed interpretation of newly acquired 3D seismic data.
This phased approach will enable the company to refine targets while aligning exploration activities across its wider Andaman portfolio.
Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, noted that, “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. 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.”
