In a statement posted on its website, Mubadala Energy has announced “another substantial gas discovery” from the Tangkulo-1 exploration well, located in South Andaman, offshore North Sumatra, Indonesia.
The Abu Dhabi headquartered company, which is the operator of the South Andaman Gross Split PSC, noted in the release that the discovery marks the second deep water well operated by the company. It follows the “major discovery” at the Layaran-1 well in South Andaman, Mubadala highlighted in the release.
Tangkulo-1 was drilled to a depth of 3,400 meters in 1,200 meters of water depth, the release revealed, adding that the well encountered 80 meters of gas column in a good quality Oligocene sandstone reservoir, confirmed through an extensive data gathering campaign.
“Utilizing a new Drill Stem Test (DST) design, the well successfully flowed 47 mmscf/d of excellent gas quality and 1,300 barrels of condensate,” Mubadala stated in the release.
“Although testing was constrained by testing facilities, the estimated well capacity is 80-100mmscf/d and over 2,000 barrels of condensate,” it added.
In the release, Mansoor Mohammed Al Hamed, the CEO of Mubadala Energy, said, “when added to our recent success at Layaran-1, this game-changing discovery promises to transform Indonesia’s and Southeast Asia’s energy landscape and demonstrates that South Andaman is one of the world’s most exciting energy plays”.
“By working with partners and harnessing our world class technical capabilities, I am confident we can realize the full potential of this block, in line with our commitment to support the government’s ambitious development timeframes,” Hamed added.
“This news also strengthens our ability to play a proactive role in the energy transition through our gas biased strategy,” the Mubadala CEO continued.
Mubadala stated in its latest release that, together with Layaran-1, this discovery adds material contingent volume and provides a platform for Mubadala Energy’s continued organic growth in the region through additional exploration and appraisal activities.
In a release posted on its site in December last year, Mubadala Energy announced a “significant gas discovery from the Layaran-1 exploration well”.
The company highlighted in the release that this was the first deep water well operated by the company. It was drilled to a depth of 4,208 meters in 1,207 meters of water depth and encountered “an extensive gas column with a thickness of over 230 meters in an Oligocene sandstone reservoir,” the release outlined, adding that the well “successfully flowed over 30mmscf/d of excellent gas quality”.
In that release, Hamed said, “with our strategy to expand our gas portfolio to support the energy transition, this development offers material commercial opportunities and adds momentum to our strategic growth story”.
“This is not only a significant development for Mubadala Energy but a huge milestone for Indonesia’s and Southeast Asia’s energy security. We are proud to have achieved this by leveraging our world class technical and operational capabilities,” Hamed added.
Also in that release, Mubadala noted that the find was the second consecutive successful well for the company in the Andaman area, “coming after the success of Timpan-1 in Andaman-II, which itself came after success at Cengkih-1 in our SK320 in Malaysia”.
In a press note sent to Rigzone on Tuesday, Wood Mackenzie said the recent Tangkulo-1 gas and condensate discovery has placed Mubadala Energy and the South Andaman block “at the center of a promising North Sumatra deepwater play”.
“This latest discovery adds further volumes to the area, bringing the total in-place resources to 11 trillion cubic feet (tcf) since Harbour Energy’s initial Timpan discovery in 2022,” it added.
The Tangkulo well has de-risked exploration prospects in the South Andaman block, Wood Mackenzie stated in the note, adding that the quality of the reservoir at Tangkulo is better than that of the Layaran discovery, “with higher levels of porosity and permeability”.
Wood Mackenzie reported in the note that the current gas demand in North Sumatra stands at around 280 million cubic feet per day, which it said could be a potential obstacle to developing large volumes.
“The Tangkulo discovery improves the viability of a range of development options, including supplying local markets or exporting via LNG or pipeline,” Andrew Harwood, director of corporate and upstream research at Wood Mackenzie, said in the note.
“If the Tangkulo discovery and other nearby prospects are developed together, they could meet the domestic requirements, enabling Mubadala to explore export solutions for its Layaran find,” he added.
“The latest Tangkulo discovery, following the giant Layaran discovery, has made Mubadala Energy the new ‘sweetheart’ in Indonesia's exploration sector … However, the next major challenge for the company will be to manage stakeholder expectations by balancing Indonesia's national requirements with its own corporate objectives,” he continued.
To contact the author, email andreas.exarheas@rigzone.com
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