Sign HoA, Mubadala Energi And PLN EPI Sign PJBG From Andaman Sea

President Director of PLN Energi Primary Indonesia Rakhmad Dewanto (right). (Photo: ANTARA)

JAKARTA - Mubadala Energy and PT PLN Energi Primary Indonesia (PLN EPI) signed Heads of Agreement (HoA) to buy and sell gas from gas fields in the Andaman Sea. This framework marks an important milestone for the Indonesian energy sector.

Through this strategic partnership, Mubadala Energy and PLN EPI will optimize cleaner natural gas and sourced from within the country in order to ensure the reliability of electricity supply and energy transition.

President Director of Mubadala Energy Indonesia, Abdulla Bu Ali, explained that this HoA is the basis for prioritizing energy supply for North Sumatra and Aceh, including utilizing the potential for the Tangkulo gas field which is located about 65 kilometers from off the coast north of Sumatra Island, which has gas reserves of more than 2 Trillion Cubic Feet (TCF).

"This is also an important step in the Tangkulo gas project development plan in South Andaman Block," said Abdulla, quoted Monday, December 1.

The energy sector, especially electricity in Indonesia, grew by an average of 5.3 percent per year until 2034, requiring infrastructure development and diversification of supply sources to ensure long-term energy security.

By combining global expertise and Mubadala Energy operational excellence, as well as PLN EPI's planned domestic growth and capability, this collaboration aims to present a solution that guarantees reliable and sustainable energy for millions of Indonesians.

This is in line with Indonesia's strategy to improve energy security, optimize domestic resources, and build a resilient energy ecosystem that also encourages a clean energy transition.

President Director of PLN Energi Primary Indonesia, Rakhmad Dewanto, said that PLN EPI supports 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 electricity in order to support energy security and energy transition in Indonesia," said Rakhmad Dewanto.

The signing of the HOA was witnessed by the Head of SKK Migas, Djoko Siswanto, who emphasized the government's commitment to encouraging collaboration between industry players to meet domestic energy needs.

"With the signing of this HoA, Mubadala will immediately submit a POD for the development of the Tangkulo Gas Field, Blok Andaman, to SKK Migas. SKK Migas is committed to completing the POD in less than 1 month in other words, which will be completed in December and then SKK Migas will immediately convey it to the Minister of Energy and Mineral Resources for approval," said Djoko.

With the completion of this POD, he continued, the Reserve Replacement Ratio (RR) 2025, which is one of the KPI SKK Migas, has achieved a target of more than 100 percent as assigned to SKK Migas by the SKK Migas Supervisory Commission under the leadership of the Minister of Energy and Mineral Resources.

HoA ini menjadi landasan untuk pembahasan lebih lanjut terkait kerangka teknis dan komersial.

Komitmen Mubadala Energy untuk mendukung kebutuhan domestik menegaskan perannya sebagai mitra jangka panjang terpercaya di Indonesia, serta PLN EPI yang terus memimpin inisiatif untuk menjamin pasokan energi yang andal dan berkelanjutan bagi bangsa.

This HoA is the basis for further discussions regarding technical and commercial frameworks.

Mubadala Energy's commitment to supporting domestic needs confirms its role as a trusted long-term partner in Indonesia, as well as PLN EPI which continues to lead initiatives to ensure a reliable and sustainable energy supply for the nation.