Mubadala Energy's latest gas strike signals transformation in Southeast Asia's energy dynamics

Mubadala Energy, an international energy company headquartered in Abu Dhabi with operations in 11 countries and overseeing operations at the South Andaman Gross Split PSC, has unveiled a significant gas discovery stemming from the Tangkulo-1 Exploration well. Situated approximately 65 kilometres offshore of North Sumatra, Indonesia, this discovery marks a noteworthy milestone in the region's energy exploration efforts.

The company's second deepwater well discovery has been made with the Tangkulo-1. This well was drilled to a depth of 3,400 metres in water 1,200 metres deep, shortly following the significant find at the Layaran-1 well, also located in South Andaman.

The Tangkulo-1 well encountered 80 metres of gas column in a good-quality Oligocene sandstone reservoir, confirmed through an extensive data-gathering campaign that included obtaining a full core of 72 metres, wireline logging, sidewall core, pressure, and fluid sampling. Utilizing a new Drill Stem Test (DST) design, the well successfully flowed 47 mmscf/d of excellent gas quality and 1,300 barrels of condensate. Although testing was constrained by testing facilities, the estimated well capacity is 80-100mmscf/d and over 2,000 barrels of condensate.

With its comparatively lower carbon footprint among traditional sources, gas holds promise as a complementary player in the energy transition. Its versatility allows seamless integration with renewables, particularly as a backup to renewable-centric power systems. Gas boilers offer a distinct advantage in their rapid activation compared to the time-consuming startup process of coal-fired plants. Beyond its role in power generation, natural gas serves as a clean-burning energy source for heating, cooling, and essential material production like aluminium, steel, and cement.

Mansoor Mohammed Al Hamed, the CEO of Mubadala Energy, commented, "When added to our recent success at Layaran-1, this game-changing discovery promises to transform Indonesia's and Southeast Asia's energy landscape and demonstrates that South Andaman is one of the world's most exciting energy plays. By working with partners and harnessing our world-class technical capabilities, I am confident we can realize this block's full potential, which aligns with our commitment to support the government's ambitious development timeframes. This news also proactively strengthens our ability to participate in the energy transition through our gas-biased strategy."

With an 80 per cent working interest in South Andaman, Mubadala Energy is the largest net acreage holder in the area. In line with the company's gas-biased strategy, Tangkulo-1 is an important pillar in the cluster's development story. The discovery unlocks further potential in the southern part of the block and indicates an additional multi-TCF of prospective gas resources in nearby structures.

"With the addition of this discovery to Layaran-1, we have significantly increased our material contingent volume. This strengthens our position and provides a solid platform for Mubadala Energy's continued organic growth in the region. We are now well-equipped to embark on additional exploration and appraisal activities, further solidifying our commitment to the region", the CEO said.