Mubadala Petroleum signed an agreement with Premier Oil to farm-out a 20 per cent participating interest in the Indonesia Andaman I and South Andaman production sharing contracts (PSCs).
The Andaman I and South Andaman PSCs are located in the underexplored but proven North Sumatra basin offshore Aceh. UAE’s Mubadala Petroleum is the operator of both the contracts.
Mubadala Petroleum is also a partner with a 30 per cent participating interest in the Andaman II PSC which is operated by Premier Oil. With participating interests in these three adjacent blocks, Mubadala Petroleum is the largest net acreage holder in the area, the company said, adding that it has secured the core of the North Sumatra basin for future exploration growth.
“With this farmout, Mubadala Petroleum will extend its partnership with Premier Oil for the exploration of the Andaman blocks offshore Aceh,” said Dr Bakheet Al Katheeri, Mubadala Petroleum’s chief executive officer.
“Both partners have a strong commitment to this new high impact growth area which supports Mubadala Petroleum’s growth strategy of finding and, if successful, developing gas for Indonesia’s growing markets.”
Mubadala said the PSCs have the potential to unlock a new material gas play for domestic consumption in North Sumatra and potentially long-term export to regional markets.