Gas Project of Arab Oil Giant to Onstream in 2028; Production Outlook Unveiled

Jakarta, CNBC Indonesia — The Special Task Unit for Upstream Oil and Gas Activities (SKK Migas) has said that the South Andaman Block project, developed by Mubadala Energy, is expected to come onstream in 2028. Deputy for Business Support Eka Bhayu Setta explained that the project forms part of the strategic upstream sector developments to boost domestic gas supply. One of the components is the South Andaman project where the concessionaire is Mubadala Energy. The estimated gas production is 312 MMSCFD and condensate 7,500 barrels per day (bpd). According to the Plan of Development (POD), the project’s investment value is estimated at US$1.95 billion. The figure also accounts for a 2.3% annual cost escalation and tax components. ‘The investment value, per POD, is US$1.9 billion with 2.3% annual cost escalation and taxes. The onstream plan is 2028,’ he said. Mubadala Energy recently announced a jumbo gas discovery from the Tangkulo-1 deepwater exploration well, drilled in the South Andaman Block located about 65 kilometres offshore the northern coast of Sumatra. The Tangkulo-1 well was drilled to a depth of 3,400 metres in a water depth of 1,200 metres, using the latest Drill Stem Test (DST) design. It flowed gas at 47 MMSCFD and 1,300 barrels of condensate. Although test results were limited due to available facilities, the well’s capacity is estimated to reach 80-100 MMSCFD and more than 2,000 barrels of condensate.