Mubadala Energy, the Abu Dhabi-headquartered international energy company, has announced the award of the Southwest Andaman exploration 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.
Mubadala Energy will hold a 100 per cent participating interest and will operate the block.
Situated immediately adjacent to Mubadala Energy's existing Andaman acreage, the Southwest Andaman block is a strategic addition to the company's Andaman position alongside its South Andaman, Central Andaman, and Andaman II blocks.
The award was the result of a rigorous technical and commercial journey that began with the identification of the Southwest Andaman opportunity in 2022.
A Joint Study Agreement (JSA) award was agreed in 2023 and completed in November 2024, following which a bid submission was made in November 2025.
Mansoor Al Hamed, Managing Director and Chief Executive Officer of Mubadala Energy, commented: "The award of the Southwest Andaman block is a testament to our team's technical conviction, expertise in deep water exploration, and growth mindset. We have an unrivalled understanding of the Andaman basin and this award builds on our existing multi-TCF strategic discoveries at Layaran and Tangkulo and Timpan. We are fully committed to unlocking the region's vast gas potential in line with our growth strategy and to support Indonesia's energy security priorities."
Geologically, Southwest Andaman represents a natural continuation of the proven Bampo DHI play that underpinned the company's recent Andaman drilling successes, including the landmark Layaran-1 and Tangkulo-1 discoveries in South Andaman, where Mubadala Energy is making progress in its development journey towards first gas before the end of 2028.
Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, added: "This award marks another important chapter in our Andaman story and reflects the trust that the Indonesian government continues to place in Mubadala Energy as a long-term, committed partner. Southwest Andaman is a strategically significant addition to our core Andaman area, and we are excited about the prospectivity it brings. As we advance our work program, we look forward to collaborating with DG MIGAS, SKK Migas, and all our stakeholders to realize the full potential of this block for Indonesia's energy future and the communities we serve."
The first exploration well at Southwest Andaman is expected to be drilled in the second exploration phase (years four to six).
This is planned following completion and full interpretation of the new 3D seismic data, in line with PSC commitments and in conjunction with Mubadala Energy's activities across its broader Andaman portfolio. -OGN/TradeArabia News Service
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