MUBADALA PETROLEUM, PREMIER OIL 20%
MEOG - Mubadala Petroleum has signed an agreement with Premier Oil to farmout a 20% participating interest in each of the Andaman I and South Andaman Gross Split Production Sharing Contracts (PSCs), in which Mubadala Petroleum is the operator.
The Andaman I and South Andaman PSCs are located in the underexplored but proven North Sumatra basin offshore Aceh. Mubadala Petroleum is also a partner with a 30% participating interest in the Andaman II PSC which is operated by Premier Oil.
With participating interests in these three adjacent blocks, Mubadala Petroleum is the largest net acreage holder in the area, securing the core of the North Sumatra basin for future exploration growth. The PSCs have the potential to unlock a new material gas play for domestic consumption in North Sumatra and potentially long-term export to regional markets.
"With this farmout, Mubadala Petroleum will extend its partnership with Premier Oil for the exploration of the Andaman blocks offshore Aceh," said Dr. Bakheet Al Katheeri, CEO of Mubadala Petroleum. "Both partners have a strong commitment to this new high impact growth area which supports Mubadala Petroleum's growth strategy of finding and, if successful, developing gas for Indonesia's growing markets."
Completion of the transaction is subject to customary conditions including government approvals.