New Asian block expands UAE oil & gas player’s Andaman Sea footprint

March 26, 2026, by Melisa Cavcic

UAE-headquartered Mubadala Energy, a wholly-owned subsidiary of Mubadala Investment Company owned by the government of Abu Dhabi, has enlarged its presence in the Andaman Sea with a new exploration block off the coast of Indonesia, Southeast Asia.

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Mubadala Energy has secured the Southwest Andaman exploration block in Indonesia, further strengthening its position in the Andaman Sea. The 100% operated production sharing contract (PSC) under Indonesia’s Gross Split scheme augments the firm’s portfolio across what it describes as one of Southeast Asia’s most emerging and prospective deepwater gas basins.

This is the company’s fifth block in the Andaman basin, building on its strategic multi-trillion cubic feet (tcf) discoveries and reinforcing its commitment to unlock the region’s gas potential, in line with its growth strategy, while supporting Indonesia’s energy security priorities.

The block was awarded by Direktorat Jenderal Minyak dan Gas Bumi (DG MIGAS) as part of the Second Bid Round 2025. Situated immediately adjacent to Mubadala Energy’s existing Andaman acreage, the Southwest Andaman block is a seen as a strategic addition to the company’s Andaman position alongside its South Andaman, Central Andaman, Andaman I, and Andaman II blocks.

The company claims that the award was the result of a rigorous technical and commercial journey that began with the identification of the Southwest Andaman opportunity in 2022. A joint study agreement (JSA) award was agreed in 2023 and completed in November 2024, following which a bid submission was made last year.

Mansoor Mohamed Al Hamed, Managing Director and Chief Executive Officer of Mubadala Energy, commented: “The award of the Southwest Andaman block is a testament to our team’s technical conviction, expertise in deep water exploration, and growth mindset.

“We have an unrivalled understanding of the Andaman basin and this award builds on our existing multi-TCF strategic discoveries at Layaran and Tangkulo and Timpan. 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.”

The firm explains that Southwest Andaman geologically represents a natural continuation of the proven Bampo DHI play that underpinned the company’s recent Andaman drilling successes, including the Layaran-1 and Tangkulo-1 discoveries in South Andaman.

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Mubadala Energy elaborates that it is making significant progress in its development journey towards first gas before the end of 2028 for these discoveries. The first exploration well at Southwest Andaman is expected to be drilled in the second exploration phase.

The activity is planned following completion and full interpretation of the new 3D seismic data, in line with PSC commitments and in conjunction with the company’s activities across its broader Andaman portfolio.

Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, noted: “This award marks another important chapter in our Andaman story and reflects the trust that the Indonesian government continues to place in Mubadala Energy as a long-term, committed partner.

“Southwest Andaman is a strategically significant addition to our core Andaman area, and we are excited about the prospectivity it brings. As we advance our work program, we look forward to collaborating with DG MIGAS, SKK Migas, and all our stakeholders to realize the full potential of this block for Indonesia’s energy future and the communities we serve.”

The UAE player’s Andaman portfolio, which spans five blocks, is interpreted to position the firm as the largest and most active explorer in the basin, with a portfolio of multi-TCF discovered resources and a growing inventory of high-quality exploration prospects.

Elsewhere, Mubadala acquired a 24.1% equity stake in SoTex HoldCo, rebranded to Caturus, which is developing Commonwealth LNG in Louisiana.