In a groundbreaking development, Abu Dhabi-based Mubadala Energy has made a historic gas discovery in Indonesia. The Layaran-1 exploration well, located off North Sumatra in Indonesia, has a potential of over 6 trillion cubic feet of gas. This makes it one of Indonesia’s largest gas finds to date.
6 trillion cubic feet of gas
The Layaran-1 discovery is estimated to have a staggering 6 trillion cubic feet of gas or approximately 170 billion cubic meters. This find marks a pivotal moment for Mubadala Energy. Hence, the successful outcome promises to derisk multiple trillion cubic feet of prospective gas resources in the area. Additionally, the offshore well produced gas at a rate of over 30 million standard cubic feet per day, the company said on Tuesday.
With an 80 percent working interest in South Andaman, Mubadala Energy is the largest area holder in the area.
“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,” said the company’s chief executive, Mansoor Al Hamed. “This is … a huge milestone for Indonesia’s and South-East Asia’s energy security,” he added.
The Layaran-1 follows Mubadala Energy’s previous success in the Andaman area after a gas find at the Timpan-1 well in July last year. Notably, the discovery aligns with broader industry trends, as seen in Eni’s significant gas discovery off East Kalimantan in Indonesia earlier this year.
Indonesia’s sustainable aspirations
Indonesia, a global coal exporter, and Southeast Asia’s economic powerhouse, is aggressively pushing towards renewable energy. The nation aims to generate at least 51 percent of its total energy from renewable sources by 2030. Moreover, it aims to achieve carbon neutrality by 2060. Mubadala Energy’s gas discovery complements Indonesia’s ambitions, providing a cleaner alternative amid the global shift away from coal.
Moreover, Mubadala Energy’s influence in Indonesia extends beyond traditional oil and gas exploration. Recent agreements with Pertamina Geothermal Energy and Chevron reflect the company’s commitment to diversifying its energy portfolio. Collaborations in geothermal projects and carbon capture initiatives underscore Mubadala Energy’s dedication to sustainable and environmentally conscious energy solutions.
Decline of coal
The Layaran-1 discovery takes place against the backdrop of a changing global energy landscape. Natural gas, considered a cleaner fossil fuel compared to coal, is gaining prominence as nations seek alternatives. Russia’s invasion of Ukraine, coupled with rising gas prices, has spurred a renewed interest in cleaner energy sources.
The International Energy Agency’s recent report signals a historic turning point, projecting a drop in global coal demand by 2026. The report indicates a record high for coal consumption this year, followed by a 2.3 percent decline in 2026. This decline is driven by a major expansion of renewable energy capacity. Mubadala Energy’s gas discovery aligns with this global shift, positioning natural gas as a pivotal player in the transition towards cleaner energy sources.
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