Abu Dhabi Mubadala Petroleum has signed a farmout agreement with Premier Oil for a 20% participating interest in the Andaman I and South Andaman Gross Split Production Sharing Contracts (PSCs) in Indonesia, according to a press resale.
The Andaman I and South Andaman PSCs are located in the underexplored but proven North Sumatra basin offshore Aceh.
“Both partners have a strong commitment to this new high impact growth area which supports Mubadala Petroleum’s growth strategy of finding and, if successful, developing gas for Indonesia’s growing markets.” Mubadala Petroleum’s CEO, Bakheet Al Katheeri, commented.
Moreover; Mubadala Petroleum is a partner with a 30% participating interest in the Andaman II PSC, which is operated by Premier Oil. The contracts have the potential to unlock gas reserves for domestic consumption in Indonesia and long-term export.
Completion of the transaction is subject to customary conditions including government approvals, according to the company’s statement.
Mubadala Petroleum is the largest net acreage holder in the area, securing the core of the North Sumatra basin for future exploration growth.