Abu Dhabi-based Mubadala Energy has announced its acquisition of a joint exploration and production contract in the “Southwest Andaman” region, following the gross production sharing contract system in Indonesia. The company secured the “Southwest Andaman” block from the Directorate General of Oil and Gas during the second bidding round for 2025, holding a 100% participating interest in the area.
According to Mansour Mohammed Al Hamed, Managing Director and CEO of Mubadala Energy, “The awarding of the ‘Southwest Andaman’ block highlights our team’s technical capabilities and expertise in deepwater exploration, along with our growth mindset. We have developed an exceptional understanding of the Andaman Sea basin, and this block complements our significant discoveries in the ‘Layaran’, ‘Tangkolu’, and ‘Temban’ fields, which contain recoverable gas reserves in the trillions of cubic feet. We are committed to advancing the tremendous potential of gas resources in this area as part of our growth strategy and in support of Indonesia’s energy security priorities.”
The “Southwest Andaman” block is a natural extension of the geological trends that justified the company’s recent drilling successes in the Andaman Sea, including notable discoveries in the ‘Layaran-1’ and ‘Tangkolu-1’ wells in the South Andaman region, where Mubadala Energy is making significant progress towards its first gas production prior to the end of 2028.
Abdullah Bou Ali, Head of Mubadala Energy in Indonesia, stated, “The award of this block marks a new chapter in our journey within the Andaman Sea, demonstrating the ongoing trust that the Indonesian government places in Mubadala Energy as a long-term reliable partner. The ‘Southwest Andaman’ block is a strategic addition to our existing blocks in the Andaman Sea, which show promising potential. As we advance our work program, we look forward to collaborating with the Directorate General of Oil and Gas and the regulatory authority in Indonesia as well as all stakeholders to develop this block in support of Indonesia’s energy future and the communities in which we operate.”
The “Southwest Andaman” block is adjacent to Mubadala Energy’s current blocks in the Andaman Sea, representing a strategic enhancement to the company’s portfolio, which includes the South Andaman, Central Andaman, and Andaman 2 blocks.
The awarding of the contract culminated from meticulous technical and commercial efforts that began with the identification of opportunity in the “Southwest Andaman” in 2022, followed by signing a joint study agreement in 2023 and its completion in November 2024, leading to the submission of the bidding proposal in November 2025. These efforts illustrate Mubadala Energy’s proactive approach to seizing opportunities and its firm commitment to strengthening its leading presence in this basin.
The first exploration well in the “Southwest Andaman” is expected to be drilled during the second exploration phase (from the fourth to sixth years), after the completion of a 3D seismic survey and its data analysis in alignment with the production sharing contract obligations, in parallel with Mubadala Energy’s broader activities in the Andaman Sea.
Mubadala Energy currently holds four blocks in the Andaman region, including South Andaman, Central Andaman, Andaman 2, and Southwest Andaman. This portfolio not only reinforces the company’s position as the largest and most active explorer in the basin, but it also boasts discovered resources estimated in the trillions of cubic feet of gas, alongside a growing array of high-quality exploration opportunities.