Mubadala Energy has signed a Heads of Agreement (HoA) with PLN Energi Primer Indonesia (PLN EPI) to supply gas from its fields in the Andaman Sea, marking a notable development for Indonesia’s energy landscape. Mubadala Energy, headquartered in Abu Dhabi, is an international energy company, while PLN EPI is a subsidiary of Indonesia’s national power and energy provider.
The new framework is intended to support Indonesia’s efforts to build greater energy resilience and strengthen long-term national energy security. As part of the proposed partnership, both organisations plan to work together to reduce reliance on LNG imports and support domestic demand with more sustainable energy supply options.
A key component of the agreement involves boosting energy provision for North Sumatra and Aceh. This includes the potential use of the Tangkulo gas field, located around 65 kilometres offshore North Sumatra, which holds more than 2 Trillion Cubic Feet (TCF) of gas-in-place.
Abdulla Bu Ali, President Director of Mubadala Energy Indonesia, said: “This agreement reflects our unwavering commitment to Indonesia’s energy future. By partnering with PLN EPI, we aim to deliver reliable and sustainable energy solutions that meet domestic needs and strengthen national energy security. This is also an important step for our development plans of the Tangkulo gas project in the South Andaman Sea.”
Indonesia’s energy sector is progressing through a period of significant transition, with growing opportunities to expand infrastructure and diversify sources of supply to maintain stability in the years ahead. Mubadala Energy and PLN EPI say the collaboration will combine the company’s international experience with PLN EPI’s local capability to deliver stable, sustainable energy solutions for millions of people.
The agreement also aligns with Indonesia’s wider strategy to optimise domestic energy resources and build a resilient and adaptable national energy system.
Rakhmad Dewanto, President Director of PLN Energi Primer Indonesia, said: “PLN EPI continues to support the development of new gas fields in Indonesia and welcomes the development of the Tangkulo gas field in the South Andaman Block by Mubadala Energy. This collaboration is also part of the development of a gas supply portfolio for the power sector to support energy security and the energy transition in Indonesia.”
The signing ceremony was attended by Djoko Siswanto, Chairman of SKK Migas, who added: “The signing of this HoA marks an important milestone in the development of the Tangkulo Project.”
