Mubadala Energy Achieves Key Milestones In Tangkulo Gas Project Development In Indonesia

Mubadala Energy, based in Abu Dhabi, is making strides with its Tangkulo gas project in the Andaman Sea. The project is progressing faster than expected, with Front End Engineering Design (FEED) and Long Lead Item (LLI) contracting well underway. The Plan of Development (POD) is anticipated by late 2025, the Final Investment Decision (FID) by mid-2026, and initial gas production by late 2028.

The Tangkulo discovery occurred in May 2024 within the South Andaman Gross Split PSC, situated about 65 kilometres offshore from North Sumatra. The well reached a depth of 3,400 metres in waters approximately 1,200 metres deep. This marks Mubadala Energy's second consecutive deepwater gas find with over 2 trillion cubic feet (TCF) of gas-in-place.

In recent months, Mubadala Energy achieved a significant discovery at Layaran in the South Andaman block. This site revealed over 8 TCF of gas-in-place. With an 80 percent working interest, Mubadala Energy operates this block. These discoveries highlight the strategic importance of the region for Indonesia's energy security.

Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, stated: "Our multi-TCF discoveries in South Andaman present a significant growth opportunity for Mubadala Energy and the accelerated development timeline reflects the strategic importance of this project for Indonesia’s energy security. Mubadala Energy is committed to growth and our operations in Indonesia form a critical pillar of our portfolio expansion strategy."

The company is also advancing its gas marketing strategy to ensure reliable domestic energy supply for Indonesia. This aims to reduce dependence on LNG imports by providing affordable local gas. Additionally, Mubadala Energy has hired over 50 experts in areas like deep-water exploration and project management to support these efforts.

Following the award of the Central Andaman block license, Mubadala Energy now holds the largest net acreage position in the area. This positions them to significantly boost gas production to meet domestic needs while creating opportunities for international exports.

Community Engagement and Infrastructure

A new digitally-enabled office space in Jakarta further supports Mubadala Energy's growth initiatives in Indonesia. The company is also investing in community programs that include workforce training and educational initiatives. These efforts underscore their long-term commitment to supporting local communities.

These developments are complemented by expanded community investment activities such as environmental programs. These initiatives reinforce Mubadala Energy's dedication to sustainable growth and its role in enhancing Indonesia's energy landscape.

With inputs from WAM