Mubadala Energy recruits SLB for Indonesia offshore gas project

The UAE’s Mubadala Energy has awarded oilfield services company SLB “multiple” contracts to drill for offshore natural gas at Indonesia’s Tangkulo deepwater development, SLB said on Thursday.

French-founded and Texas-headquartered SLB, formerly known as Schlumberger, said it won the contracts, which include “drilling, completion and testing services across the full well life cycle,” through a competitive bidding process. 

Initial production is expected to start by the end of 2028, according to a press release. 

Abu Dhabi-based Mubadala Energy, which is wholly owned by Mubadala, signed an interim deal in early December with PLN Energi Primer Indonesia, a subsidiary of state-owned utility company PLN, to supply gas from the field in the Andaman Sea to the North Sumatra and Aceh provinces.

Abdulla Bu Ali, president director of Mubadala Energy Indonesia, called the Tangkulo project “a cornerstone” in his company’s southeast Asian portfolio in a statement.

“This contract award reflects Mubadala Energy’s strategic vision to develop Indonesia’s offshore resources responsibly and efficiently,” he said. 

Gulf investment in Indonesia has been growing in recent months as the region strives to diversify its economic partnerships across the world.

Indonesia’s wealth fund Danantara Indonesia and the Qatar Investment Authority agreed last April to establish a $4 billion joint fund to target priority sectors in the southeast Asian nation, including in the energy sector.

In July, private Saudi and Indonesian companies agreed $27 billion worth of deals, primarily in the clean energy, petrochemicals and aviation fuel sectors.

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