Mubadala Energy, in partnership with Harbour Energy, has won the rights to explore for oil and gas in the Central Andaman block, located in the Andaman Sea off Indonesia.
Migas, the Indonesian oil and gas regulator, granted Mubadala the licence as part of a recent licensing round, the Mubadala Investment Company’s oil and gas unit said in a statement on Wednesday.
London-based Harbour Energy will hold a 60 per cent stake in the venture, with Mubadala Energy holding the remainder.
The move strengthens Mubadala Energy's broader strategy to expand its operations in the Andaman Sea, the company said.
“The successful bidding for the Central Andaman block is an important strategic development that will unlock further potential opportunities,” said Adnan Fateem, chief operating officer at Mubadala Energy.
“We are well positioned to realise the potential of South and Central Andaman and look forward to working with our partner and government stakeholders to develop these projects.”
Mubadala Energy also said it has completed a drilling campaign in the South Andaman area, specifically focusing on appraising the Layaran discovery.
Last year, the company said that through the Layaran-1 exploration well, it had identified the potential for more than six trillion cubic feet of gas in place.
“The results are … an important milestone for our company that will support Indonesia’s energy transition and energy security priorities,” said Abdulla Ali, president director, Indonesia, Mubadala Energy.
Mubadala Energy, formerly Mubadala Petroleum, has been operating in Indonesia since 2004. The Abu Dhabi-based company has assets and operations spanning 11 countries, primarily in the Mena region, Russia and South-East Asia.
Indonesia, South-East Asia’s largest economy, seeks to boost domestic use of natural gas following discoveries in the Andaman and North Bali-Lombok blocks.
The country, one of the world's largest coal exporters, also plans to generate at least 51 per cent of its total energy from renewable sources by 2030.
It also aims to become carbon neutral by 2060 or earlier, with renewable energy providing up to 85 per cent of the energy mix.