SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities) and Mubadala Energy have announced a significant gas discovery from the Layaran-1 Exploration Well in the South Andaman Cooperation Contract (KKS), approximately 100 kilometers off the northern coast of Sumatra.
Mubadala Energy, headquartered in Abu Dhabi, United Arab Emirates, is the operator of the Gross Split South Andaman Cooperation Contract. Layaran-1 marks the company’s first operated well, drilled to a depth of 4,208 meters in 1,207 meters of water.
The well has encountered a broad gas column exceeding 230 meters in thickness in a high-quality Oligocene sandstone reservoir. Comprehensive data acquisition, including wireline, coring, sampling, and production tests (DST), has been carried out. The well successfully flowed high-quality gas with a capacity of 30 million standard cubic feet per day (mmscf/d).
This significant gas resource discovery aligns with the Indonesian Government’s target to achieve oil production of 1 million barrels per day (BOEPD) and natural gas production of 12 billion standard cubic feet per day (BSCFD) by 2030.
Dwi Soetjipto, Head of SKK Migas, expressed appreciation for the large gas discovery in South Andaman operated by the South Andaman Cooperation Contract Contractor (KKKS), Mubadala Energy.
“On behalf of SKK Migas, I express my gratitude for the hard work and strong dedication shown by Mubadala Energy in deep-sea drilling. Congratulations to Mubadala Energy for the successful discovery of a significant gas reserve,” said Dwi on December 19, 2023.
Based on reports from Mubadala Energy (South Andaman) RSC LTD, the Layaran-1 well’s discovery has the potential to reach 6 trillion cubic feet (tcf) of gas-in-place, potentially surpassing the Geng North-1 well discovery in the Kutai Basin and ranking among the world’s top three. SKK Migas will follow up on this report with further evaluation and study.
Dwi emphasized that the substantial discovery in South Andaman is a wonderful gift as the year 2023 comes to a close.
“The upstream oil and gas industry will make history, marking the first time Indonesia has obtained two giant discoveries in the same year in 2023,” He stated.
The consecutive major gas discoveries in 2023 showcase the success of exploration activities, the main theme of the upstream oil and gas industry in 2023, which will continue into 2024.
Dwi stated that the significant gas discovery in South Andaman will enhance the competitiveness of Indonesia’s upstream oil and gas industry and drive increased investment in the future.
“We are optimistic that global oil and gas companies, International Oil Companies (IOCs), will once again consider Indonesia as their investment portfolio. Consecutive giant discoveries hopefully become a game-changer for the national upstream oil and gas industry,” he said.
Commenting on this significant strategic development, Mansoor Mohammed Al Hamed, CEO of Mubadala Energy, stated that Mubadala’s strategy is to expand its gas portfolio to support the energy transition.
“This development offers significant commercial opportunities and adds momentum to our strategic growth. It is not only a significant milestone for Mubadala Energy but also a major historical milestone for Indonesia’s energy resilience,” he said.
“We are proud to have achieved this by leveraging our world-class technical and operational capabilities. This confirmed new discovery is the second consecutive success for Mubadala Energy in the Andaman region, following the Timpan-1 success in the Andaman II KKS,” he added.
According to Mansoor, these discoveries increase contingent material volumes and provide a foundation for Mubadala Energy’s sustainable growth in the region.
