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Abu Dhabi company Mubadala Energy has discovered more than 6 trillion cubic feet of gas at the Layaran-1 well in the Andaman Sea, about 100 kilometers from the Indonesian island of North Sumatra.
Indonesia hopes the discovery will spur investment in the energy sector, but commercialization could face challenges, including uncertainty that could come with next year’s presidential election.
Global energy consultancy WoodMac said the Layaran discovery cemented the North Sumatra offshore basin as one of the most promising emerging deepwater hotspots in the Asia-Pacific region.
Mubadala’s chief executive officer said the discovery offered business opportunities for its gas investment plans, but analysts noted that commercialization is still difficult and that it may be necessary to improve connectivity with the rest of Sumatra or restart local gas plants to explore new markets.
(Source: kr-asia Image source: freepik)
