UAE-based Mubadala Energy has announced the discovery of natural gas off the coast of Indonesia.
Analysts believe it is the largest deepwater gas discovery this year, according to Reuters.
According to the company, the discovery was made in the South Andaman region, about 100 kilometers from North Sumatra.
The well, drilled by Mubadala Energy, produces 30 million cubic feet per day of “excellent quality gas,” the company said.
The company's CEO, Mansour Mohammed Al Hamed, said: “This development provides concrete business opportunities to support the energy transition in our gas portfolio expansion strategy and further strengthens our strategic growth story. »
The reservoir, operated by Emirati energy company Mubadala Energy, could hold 3.3 trillion cubic feet of recoverable reserves, Wood Mackenzie estimated in a Reuters report.
Indonesia said the discovery would help meet its goal of producing 12 billion cubic feet of natural gas per day by 2030. This will double current gas production.
Italian company Eni made a significant discovery off the coast of Indonesia in October. The company says it has tapped an aquifer containing 5 trillion cubic feet of natural gas, and another 5 trillion cubic feet could be found in the coastal region of East Kalimantan.
Eni said it was accelerating the development of the Jeng North deepwater gas field off Indonesia, with first commercial production expected in 2027.
Indonesia's natural gas production has declined significantly over the past decade. Production fell from more than 8.4 billion cubic feet per day to 6 billion cubic feet per day in 2011. Indonesia, once the largest LNG exporter, has lost its place among the leaders in the segment and is now trying to win her back.
By Charles Kennedy for Oilprice.com
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