Abu dhabi: Mubadala Energy, the Abu Dhabi-headquartered international energy company, announced the award of the Southwest Andaman exploration Production Sharing Contract (PSC) under Indonesia's Gross Split scheme. The block was awarded by Direktorat Jenderal Minyak dan Gas Bumi (DG MIGAS) as part of the Second Bid Round 2025. Mubadala Energy will hold a 100 percent participating interest and will operate the block.
According to Emirates News Agency, the Southwest Andaman block is strategically located adjacent to Mubadala Energy's existing Andaman acreage. This new award complements the company's Andaman position alongside its South Andaman, Central Andaman, and Andaman II blocks. The award follows a detailed technical and commercial process that began with identifying the opportunity in 2022 and included a Joint Study Agreement (JSA) completed in November 2024, leading to the bid submission in November 2025.
Mansoor Mohamed Al Hamed, Managing Director and Chief Executive Officer of Mubadala Energy, expressed that the award is a testament to the company's technical expertise and deep water exploration capabilities. Mubadala Energy aims to leverage its understanding of the Andaman basin to unlock the region's gas potential, contributing to Indonesia's energy security priorities.
Geologically, the Southwest Andaman block continues the proven Bampo DHI play that has supported the company's recent drilling successes, including the Layaran-1 and Tangkulo-1 discoveries. Mubadala Energy is advancing towards first gas by the end of 2028 in the South Andaman region.
Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, highlighted the significance of the award as a reflection of the Indonesian government's trust in Mubadala Energy. He emphasized the strategic addition of Southwest Andaman to the core Andaman area and the company's commitment to collaborating with DG MIGAS, SKK Migas, and stakeholders to explore the block's full potential.
The initial exploration well at Southwest Andaman is anticipated in the second exploration phase, following the interpretation of new 3D seismic data. Mubadala Energy's Andaman portfolio now includes four blocks, positioning the company as the largest and most active explorer in the basin, with significant discovered resources and exploration prospects.
