UAE – Mubasher: Mubadala Petroleum has signed an agreement to farmout the UK-based company Premier Oil a 20% participating stake in its gross production sharing contracts (PSCs); South Andaman and Andaman I, Emirates News Agency (WAM) reported.

The deal will come into force after meeting the customary conditions including government approvals, according to WAM.

Located in the North Sumatra basin offshore Aceh, the Andaman I and South Andaman PSCs are likely to introduce a new material gas play for domestic consumption and promote potential long-term export to regional markets.

Accordingly, Mubadala would be the largest net acreage holder in North Sumatra basin, Indonesia.

Bakheet Al Katheeri, CEO of Mubadala Petroleum, commented: "With this farmout, Mubadala Petroleum will extend its partnership with Premier Oil for the exploration of the Andaman blocks offshore Aceh.

“Both partners have a strong commitment to this new high impact growth area which supports Mubadala Petroleum’s growth strategy of finding and, if successful, developing gas for Indonesia’s growing markets," he added.

Mubadala Petroleum, which also a partner with a 30% participating stake in the Andaman II PSC operated by Premier Oil, is the operator of both the Andaman I and adjacent South Andaman PSCs.