Mubadala Energy has expressed keen interest in continuing exploration efforts in Block Andaman III in the North Aceh Sea, after the withdrawal of Repsol and Petronas.
Mubadala Energy is an energy company based in the United Arab Emirates and is a subsidiary of Mubadala Investment Company. The company is engaged in various segments of the energy industry, including oil and gas exploration and production, renewable energy, and power generation.
This development comes after Repsol and Petronas decided not to extend the additional exploration time (tambahan waktu eksplorasi – TWE) for Block Andaman III, which concluded on June 23, 2023, following disappointing results in the Rencong-1X well.
Dwi Soetjipto, the Head of SKK Migas, explained that Mubadala is currently studying the geological formations and seismic data from Block Andaman III. He believed that the company is well-equipped to manage oil and gas activities in the waters off of Aceh.
One compelling reason for this optimism is Mubadala’s current management of three other oil and gas blocks in the Andaman Sea – Blocks Andaman I, Andaman II, and South Andaman. Notably, Block Andaman I, operated by Mubadala Petroleum (MP) and Harbour Energy, is scheduled to be on-stream by 2030.
“Certainly, those nearby are potential candidates for integration into the Andaman III region,” Dwi commented.
Tutuka Ariadji, the Director General of Migas at the Ministry of Energy and Mineral Resources, echoed similar sentiments. He expressed their openness to Mubadala’s proposal for a joint study of Block Andaman III.
However, it’s important to note that as of now, Mubadala does not hold any participation rights in the Andaman III work area.
“If Mubadala wants to engage in a joint study, we are open to it. So far, there have been no commitments; we are just in the early stages of discussion,” Tutuka added.
Repsol and Petronas shifts focus
Previously, Repsol and Petronas had agreed to relinquish the oilfield drilling project in Block Andaman III, located in the North Aceh Sea.
Amir Faisal Jindan, Repsol Indonesia’s Stakeholders Relations Manager, revealed that both companies had submitted documents to return the management contract for Block Andaman III to the Aceh Oil and Gas Management Agency (BPMA).
Repsol previously held a 51% participation share in Block Andaman III, with Petronas at 49%, and the recoverable reserve estimated at 1.89 million barrels of oil equivalent.
“We, Repsol and Petronas, have agreed not to proceed with activities in Andaman III and to return it to the country through BPMA. This is currently in progress,” Amir stated.
He explained that the drilling results from the Rencong-1X well did not align with the expectations set by 3D seismic data from late 2017. The drilling of the Rencong-1X well was a firm commitment that Repsol had undertaken.
Unfortunately, the drilling in the depths of the North Aceh Sea and the Malacca Strait, reaching a depth of 4,000 meters below the seabed, yielded no hydrocarbon prospects.
“Back then, the estimates were quite significant, and it could have potentially revived the Arun field. However, proving hydrocarbon prospects required drilling, and the outcome was zero,” Amir explained.
He further revealed that Repsol and Petronas have now shifted their focus towards developing Block Sakakemang in South Sumatra. In this venture, both Petronas and Repsol hold a 45% stake each, with Mitsui Oil Exploration Co. Ltd (MOECO) having a 10% share.
“We hope to begin production in Sakakemang in early 2028,” Amir concluded, leaving the door open for promising developments in the region.
