The upstream oil and gas authority SKK Migas is seeking to accelerate the development of the giant gas discovery made by Mubadala Energy in the South Andaman block, offshore Aceh Province, in the hope that it could start production in 2028 or 2029.
"In 2024 the appraisal will begin, in 2025-2026 the plan of development (POD) will be implemented and in 2028-2029 it will be onstream," said Benny Lubiantara, Deputy for Exploration, Development, and Management of Work Areas at SKK Migas, in a statement on Friday.
UAE-based energy firm Mubadala Energy recently announced a significant gas discovery from the Layaran-1 exploration well, drilled in South Andaman block. Mubadala, which holds an 80% interest in the block as the operator, said that the discovery has a potential for over 6 TCF of gas in-place.
Meanwhile, Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, was quoted in the SKK Migas statement Friday as saying that that the discovery in South Andaman is part of the company's future program to support Indonesia's 2030 production target of 1 million barrels of oil per day and 12 billion cubic feet of gas per day.
"Indonesia has incredible potential regarding oil and gas reserves. This discovery is a blessing and is expected to support the 2030 production target," he said.
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Following this discovery, Mubadala Energy plans to expedite the process for drilling other exploration wells in the same work Area, seeking support from various stakeholders to realize these plans. Abdulla acknowledged the improvements made by the government in legal certainty and fiscal terms and appreciated the flexibility provided in contract mechanisms, both gross split and cost recovery.
Looking ahead, Abdulla emphasized Indonesia's immense potential, especially in clean energy like natural gas, aligning with the company's strategy to support the energy transition. "Indonesia is one of our key investments, given its vast potential, particularly in terms of clean energy resources," he said.
Italian oil and gas company ENI has also reported an in-place gas reserve find at the Geng North-1 exploration well in the North Ganal Work Area, East Kalimantan, amounting to 5 TCF, with an estimated 400 million barrels of condensate.
Lubiantara expressed hope that these discoveries (in Aceh and East Kalimantan) would attract foreign investors back to Indonesia and called for improvements in fiscal terms and ease of doing business to enhance the country's investment appeal. He mentioned that
Indonesia is competing with other countries, and substantial improvements are needed to attract investments.
Editing by Reiner Simanjuntak
