Mubadala Energy, a leading energy company based in the United Arab Emirates, has announced in a statement a major discovery in Indonesia’s South Andaman Block.

According to analysts, this is the second-largest deep-water discovery in the world this year.

The discovery was made through the Layaran-1 exploration well, located around 100 km off the coast of northern Sumatra. Mubadala Energy drilled to a depth of 4,208 meters (13,805 feet) in 1,207 meters (3,959 feet) of water, marking their first deep water operation.

The potential gas-in-place for this discovery is estimated to be over 6 trillion cubic feet (tcf). This is a significant find for Mubadala Energy and Indonesia’s energy sector, as it has the potential to greatly increase the country’s gas reserves.

Wood Mackenzie, a leading energy research and consultancy firm, estimates an initial 3.3 tcf of recoverable resources, which would make Layaran the second largest Deepwater discovery globally in 2023, it said in a note on Wednesday.

“This development offers material commercial opportunities and adds momentum to our strategic growth story,” Mubadala chief executive Mansoor Mohamed Al Hamed said in the statement.

“This is not only a significant development for Mubadala Energy but a huge milestone for Indonesia’s and Southeast Asia’s energy security,” Al Hamed added.

Indonesia’s upstream oil and gas regulator (SKK Migas) said this discovery is important for Southeast Asia’s biggest economy’s goal to reach gas output of 12 billion standard cubic feet per day in 2030.