Mubadala Energy, the Abu Dhabi-headquartered international energy company, has secured the Production Sharing Contract (PSC) for the Southwest Andaman exploration block under Indonesia’s Gross Split scheme. The award was granted by Direktorat Jenderal Minyak dan Gas Bumi (DG MIGAS) as part of the Second Bid Round 2025. Under the terms of the agreement, Mubadala Energy will take a 100% participating interest and assume operatorship of the Southwest Andaman exploration block. Positioned adjacent to the company’s existing Andaman assets, the block strengthens its footprint in the basin, complementing its holdings in South Andaman, Central Andaman, and Andaman II.
The acquisition of the Southwest Andaman exploration block follows a multi-year process that began with the identification of the opportunity in 2022. A Joint Study Agreement (JSA) was awarded in 2023 and completed in November 2024, paving the way for a formal bid submission in November 2025. The successful award reflects what the company describes as a disciplined technical and commercial approach, reinforcing its strategy of establishing a leading presence in the Andaman basin. Mansoor Mohamed Al Hamed, Managing Director and Chief Executive Officer of Mubadala Energy, commented, “We are fully committed to unlocking the region’s vast gas potential in line with our growth strategy and to support Indonesia’s energy security priorities.”
From a geological standpoint, the Southwest Andaman exploration block is seen as an extension of the Bampo DHI play, which has already delivered notable results for Mubadala Energy. This includes the Layaran-1 and Tangkulo-1 discoveries in South Andaman, where the company continues to advance development activities aimed at achieving first gas before the end of 2028. The new block is expected to follow a structured exploration timeline, with the first well planned for the second exploration phase, covering four to six years. This will proceed after the acquisition and full interpretation of new 3D seismic data, in accordance with PSC commitments and aligned with broader activities across the company’s Andaman portfolio.
With the addition of the Southwest Andaman exploration block, Mubadala Energy’s presence in the region now spans five blocks: South Andaman, Central Andaman, Andaman I, Andaman II, and Southwest Andaman. Together, these assets position the company as the largest and most active explorer in the basin, supported by a portfolio of multi-TCF discovered resources and a growing pipeline of exploration prospects.
