Mubadala Energy expanded its footprint in Southeast Asia after securing a new exploration block in the Andaman Sea off the coast of Indonesia. As a result, the move strengthens the company’s position in one of the region’s most promising offshore gas basins.
In particular, Indonesia awarded the Southwest Andaman block under its Gross Split production sharing contract system. Mubadala Energy now holds full operational control and plans to accelerate exploration activities to unlock new gas resources.
At the same time, this development marks the company’s fifth block in the Andaman basin. It builds on previous discoveries that contain multi-trillion cubic feet of gas and reinforces the firm’s long-term commitment to the region.
Meanwhile, the block lies near Mubadala Energy’s existing assets, including South Andaman, Central Andaman, Andaman I, and Andaman II. This means the company can integrate operations and maximize efficiency across its growing portfolio.
Direktorat Jenderal Minyak dan Gas Bumi (DG MIGAS) granted the block as part of the country’s Second Bid Round 2025. In turn, the initiative reflects Indonesia’s efforts to attract foreign investment and boost domestic energy production.
Previously, the company identified the Southwest Andaman opportunity in 2022 and followed it with a joint study agreement in 2023. It then completed technical evaluations in late 2024 before submitting its final bid.
Moreover, Mubadala Energy says the expansion aligns with its broader growth strategy. At the same time, it supports Indonesia’s goal of strengthening energy security and meeting rising domestic demand for natural gas.
Notably, the Andaman Sea continues to gain attention as a key exploration hotspot. Recent discoveries in nearby offshore projects in Malaysia further highlight the basin’s significant resource potential.
From an industry perspective, analysts believe the latest move positions Mubadala Energy as a major player in the region’s deepwater gas sector. Consequently, its growing presence could support long-term supply stability across Southeast Asia.
Companies will likely increase exploration and development activities in the Andaman basin. Overall, continued investment signals strong confidence in the region’s future as a global gas hub.
