UAE-based Mubadala Petroleum has signed an agreement with UK’s Premier Oil to farm out a 20 percent participating interest in each of the Andaman I and South Andaman Gross Split Production Sharing Contracts (PSCs) located offshore Indonesia.
Mubadala Petroleum is the operator of both the Andaman I and adjacent South Andaman PSCs.
Announcing the deal with Premier on Wednesday, Mubadala said that completion of the transaction is subject to customary conditions including government approvals. The Andaman I and South Andaman PSCs are located in the underexplored but proven North Sumatra basin offshore Aceh.
Mubadala is also a partner with a 30 percent participating interest in the Andaman II PSC which is operated by Premier Oil.
Mubadala noted that, with participating interests in these three adjacent blocks, the company is the largest net acreage holder in the area. According to the company, the PSCs have the potential to unlock a new material gas play for domestic consumption in North Sumatra and potentially long-term export to regional markets.
Dr Bakheet Al Katheeri , Mubadala Petroleum’s Chief Executive Officer, commented: “With this farm-out, Mubadala Petroleum will extend its partnership with Premier Oil for the exploration of the Andaman blocks 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.”
In an update on Wednesday Premier said that 3D seismic acquisition program across the Andaman I, Andaman II, and South Andaman licenses was completed earlier this year and will be used to mature the prospect inventory identified on the earlier 2D data.
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