Mubadala Energy has strengthened its position in Southeast Asia’s most promising deepwater gas basin with the award of the Southwest Andaman Production Sharing Contract (PSC) under Indonesia’s Gross Split scheme. The block was awarded by Direktorat Jenderal Minyak dan Gas Bumi (DG MIGAS) as part of the Second Bid Round 2025, with Mubadala Energy securing a 100% participating interest and operatorship, reinforcing its aggressive upstream growth strategy in the region.
The Southwest Andaman block is strategically located adjacent to the company’s existing Andaman acreage, expanding a contiguous and highly prospective position that already includes South Andaman, Central Andaman, Andaman I, and Andaman II. This latest addition consolidates Mubadala Energy’s status as the largest and most active explorer in the Andaman basin, with a portfolio that includes multi-trillion cubic feet gas discoveries and a growing inventory of high-quality exploration prospects.
This award follows a structured, multi-year technical and commercial effort that began with opportunity identification in 2022. A Joint Study Agreement was secured in 2023 and completed in late 2024, leading to a competitive bid submission in November 2025. The successful outcome highlights the company’s disciplined early-entry strategy and its ability to capture value in frontier deepwater plays through data-driven exploration and strong subsurface expertise.
From a geological perspective, Southwest Andaman represents a continuation of the proven Bampo Direct Hydrocarbon Indicator play, which has already delivered significant discoveries such as Layaran-1 and Tangkulo-1. These wells have helped de-risk the basin and underpin ongoing development plans, with first gas from existing discoveries targeted before 2028. Central to this development concept is the planned deployment of the Tangkulo FPSO, which is expected to serve as a key hub for processing and exporting gas from the Tangkulo field and potentially nearby tie-ins.
The Southwest Andaman PSC could ultimately benefit from this infrastructure-led approach, offering potential synergies through phased tie-back opportunities to the Tangkulo FPSO. This would enable faster commercialization of future discoveries while optimizing capital efficiency across the broader Andaman portfolio.
The first exploration well in Southwest Andaman is expected to be drilled during the second exploration phase, between years four and six, following the acquisition and full interpretation of new 3D seismic data. This phased development approach aligns with PSC commitments while enabling optimized capital allocation and integration with ongoing activities across Mubadala Energy’s Andaman assets.
The award also reinforces Mubadala Energy’s long-term partnership with Indonesian regulators and stakeholders, including continued collaboration with DG MIGAS and SKK Migas. As Indonesia prioritizes domestic gas development to support energy security and economic growth, the expansion of Mubadala Energy’s Andaman footprint—anchored by scalable infrastructure such as the Tangkulo FPSO—positions the company as a key contributor to future supply.
For oil and gas professionals, the Southwest Andaman PSC underscores the continued momentum behind deepwater gas exploration in Southeast Asia, the importance of early basin access, and the role of flexible fiscal frameworks such as Indonesia’s Gross Split scheme in attracting international investment. With its expanding acreage, proven discoveries, and infrastructure-linked development strategy, Mubadala Energy is firmly establishing itself as a leading force in unlocking the Andaman basin’s significant gas potential.
