JAKARTA (TheInsiderStories) – United Arab Emirates’ (UAE) investment firm Mubadala Petroleum has signed an agreement with British energy producer Premier Oil to farm out a 20 percent participating interest in Andaman and South Andaman concessions located at Aceh Province, said the company today (07/17).
Mubadala is the operator of both the Andaman I and adjacent South Andaman. The deal use Gross Split Production Sharing Contracts scheme. It said, the completion of the transaction is subject to the government approvals.
Currently, the two companies is also partnering in the Andaman II project with a 30 percent participating interest, which is operated by the British company. With participating interests in these three adjacent blocks, Mubadala become the largest net acreage holder in the area, securing the core of the North Sumatra basin for future exploration growth.
The projects have the potential to unlock a new material gas supply for the domestic consumption in North Sumatra and potentially long-term export to regional markets.
Bakheet Al Katheeri, Mubadala’ chief executive officer, commented, ”With this farmout, Mubadala Petroleum will extend its partnership with Premier Oil for the exploration of the Andaman blocks offshore Aceh.”
Mubadala is the operator of both the Andaman I and adjacent South Andaman. The deal will leave the Abu Dhabi energy firm as one of the largest operators in the unexplored North Sumatra basin. The value of the deal was not disclosed.
The company is also a partner with a 30 percent participating interest in the Andaman II PSC which is operated by Premier Oil.
Mubadala Petroleum has been on the hunt for up and coming concessions areas with prospects for future growth such as the Eastern Mediterranean. Last year, the company agreed to acquire a minority stake from Italian Eni’ share in Egypt’s Nour North Sinai Offshore Area concession, which the Italian energy company operates through its subsidiary IEOC.
Mubadala has been active in hydrocarbons exploration in North Africa’s biggest economy following another acquisition in June 2018 of a 10 percent participating interest in the Shorouk concession from Eni, which contains the massive Zohr gas field.
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.
Mubadala and Premier were the winners of Indonesia’ gas and oil auction that announced on Jan. 31, 2018. Mubadala was awarded as the winner for Andaman I and South Andaman working area. Mubadala was the only bidder for the block.
While Premier has been selected as the winner for Andaman II, beat out the two participants Repsol Exploracion SA and publicly listed energy company PT Energy Mega Persada Tbk (IDX: ENRG).
Written by Lexy Nantu, Email: email@example.com