Mubadala Energy Signed Natural Gas Exploration Agreement with Electricity Distribution Company

SEATTLE (Oil Monster):  The top electricity distribution firm in Indonesia, Perusahaan Listrik Negara (PLN), and Abu Dhabi-based Mubadala Energy have inked a Memorandum of Understanding (MoU) on natural gas exploration.

The main objective of the MoU is to investigate potential power generation options from the South Andaman blocks, which are situated offshore in Northern Sumatra, Indonesia. In order to meet Indonesia's growing energy needs and provide long-term prospects for regional economic development, the agreement is an essential first step.

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More than 8 trillion cubic feet (TCF) of gas have been discovered at the Layaran and Tangkulo fields in the South Andaman region, according to recent major gas discoveries made by Mubadala Energy. The partnership will aim to generate electricity from these vast natural gas resources in order to meet the region's increasing demand for electricity.

The MoU also mandates the construction of the infrastructure required to make gas transportation and processing easier. Both parties will work together to perform a study that will assess the technical and economic viability of exploiting natural gas resources.

The partnership with PLN will help to realize the South Andaman block's full potential, according to Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy. According to him, it also shows the company's dedication to the development of renewable energy.