Mubadala Energy is advancing the fast-track development of its Tangkulo gas discovery offshore Indonesia, nearing a final investment decision (FID) targeted for June. The project is located on the South Andaman production sharing contract (PSC), approximately 65 kilometres offshore northern Sumatra, and holds reserves exceeding 2 trillion cubic feet of gas.

Drilling Rig Procurement

The operator has initiated a procurement process to secure a deepwater drilling unit for a campaign scheduled to begin in mid-2027. It is prequalifying companies to provide either a drillship or semi-submersible rig capable of operating in water depths over 1200 metres. While submissions for both Indonesian and foreign-flagged rigs are accepted, priority will be given to units flying the Indonesian flag in compliance with local cabotage regulations. The associated contract has a minimum local content (TKDN) requirement of 5%.

Project Development and Timeline

Mubadala, with its PSC partner Harbour Energy holding a 20% stake, aims to start production in the fourth quarter of 2028. The field will be developed using a floating production, storage and offloading (FPSO) vessel. The front-end engineering and design (FEED) contract for the FPSO is being contested by Yinson Production and Bumi Armada.

Recent Contract Awards

Further supporting the development, US services company SLB was awarded multiple offshore drilling services contracts for the Tangkulo project last month. The qualification process for prospective bidders in the current rig procurement requires documents to be submitted by 9 March.