Mubadala Energy Announces Major Gas Discovery in Indonesia

Mubadala Energy, the Abu Dhabi-based global energy company and operator of the "South Andaman" production sharing contract, has announced another significant gas discovery at the "Tankulo-1" exploration well. Located approximately 65 kilometers off the north coast of Indonesia's Sumatra Island, this discovery marks a substantial find in the region.

The company stated that this discovery is the second in deep water under its operation. The "Tankulo-1" well was drilled to a depth of 3,400 meters in water depths reaching 1,200 meters. This achievement follows just months after the substantial find at the "Layar-1" well, also located in South Andaman.

The drilling at "Tankulo-1" revealed a gas column 80 meters thick in a high-quality sandstone reservoir. The company collected data and rock samples, along with conducting technical tests and analyzing pressure data and fluid samples. Using an innovative well flow test design, the company achieved successful gas flow of excellent quality exceeding 47 million cubic feet per day and 1,300 barrels of condensates, according to the company’s statement.

Despite the test being constrained by available testing tools, estimates suggest that the well's production capacity could range between 80-100 million cubic feet per day, with over 2,000 barrels of condensates.

Mansour Mohamed Al Hamed, CEO of Mubadala Energy, commented on this new achievement, saying, "This discovery, following our recent success at 'Layar-1,' represents a turning point for the energy landscape in Indonesia and Southeast Asia at large. It proves that the South Andaman region is one of the most significant natural gas sites globally. By working with our partners and employing our world-class technical capabilities, we will undoubtedly realize the full potential of this region, in line with the ambitious timeline set by the government for development. This discovery further bolsters our efforts to play an active role in the energy transition, aligning with our strategy that focuses on natural gas."

Owning an operating stake of 80 percent in the "South Andaman" concession area, Mubadala Energy holds the largest concession area in the region. In line with the company's strategy favoring natural gas, the "Tankulo-1" well forms a cornerstone for developing natural gas clusters in the area, promising more opportunities in the southern part, and indicating the potential for several additional trillions of cubic feet of gas in adjacent traps within the concession area.

This discovery, alongside "Layar-1," is set to significantly increase production and provide a solid base for Mubadala Energy's growth in the region through further exploration and appraisal activities.