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Mubadala Energy to Develop Giant Andaman Gas

Mubadala Energy has launched the search for a large floating production, storage, and offloading (FPSO) vessel to develop its major gas finds offshore Indonesia in the Andaman Sea. The move signals a critical next step in advancing what could become one of Southeast Asia’s most significant gas projects.

The UAE-based energy company, a subsidiary of Mubadala Investment Company, has made two major discoveries in the South Andaman Production Sharing Contract (PSC): the Layaran field in December 2023 and the Tangkulo field in May 2024. According to Mubadala, the discoveries together hold more than 8 trillion cubic feet (Tcf) of gas in place, positioning the Andaman acreage as a potential new hub for regional gas supply.

While Mubadala has yet to announce official figures for recoverable reserves, joint venture partner Harbour Energy, a leading UK independent, has confirmed that the resource base spans multiple Tcf of recoverable gas — reinforcing the scale and strategic value of the discoveries.

The proposed FPSO is expected to serve as the backbone of field development, allowing Mubadala to process and export gas from the remote offshore basin efficiently. The FPSO solution is likely to be paired with subsea infrastructure, enabling the company to monetize reserves and meet growing regional energy demand, particularly in Indonesia and nearby LNG markets.

These developments are part of a broader push by Mubadala Energy to strengthen its upstream gas portfolio in Asia and support the energy transition by expanding low-carbon gas production. The company has been active in Southeast Asia for over a decade and is now consolidating its position as a major player in Indonesia’s evolving energy landscape.

As work on front-end engineering and design (FEED) progresses, the FPSO tender process will attract interest from major offshore contractors, and could represent one of the largest floating production projects in Asia over the next few years.

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