Mubadala Energy, the Abu Dhabi headquartered international energy company, and Perusahaan Listrik Negara (PLN), Indonesia’s leading electric power distribution company, have signed an MoU to explore potential strategic collaboration in both gas utilization and infrastructure development.

The agreement will assess power generation opportunities from the South Andaman blocks operated by Mubadala Energy, located in the offshore Northern part of North Sumatra, Indonesia. It follows the recently announced gas discoveries at the Layaran and Tangkulo fields in South Andaman, which amount to over 8 TCF of gas in place.

This collaboration initiative aims to harness the full potential of the region's natural gas resources to meet growing energy demand while fostering infrastructure growth that benefits both businesses and local communities.

It establishes a framework for the companies to conduct a joint study, examining the opportunities to develop natural gas resources for power generation.

It also sets out the parameters to examine the infrastructure enhancements needed to support gas processing, transportation, and local economic growth in support of Indonesia’s energy security and energy transition goals.

Commenting on the agreement, Mansoor Mohamed Al Hamed, Managing Director & CEO of Mubadala Energy, said: "This is an important step forward in realizing our shared vision of sustainable energy development.

"We believe that by working together, we can unlock the full potential of South Andaman block, bringing significant value to both companies and the region as a whole."

Echoing these sentiments, Darmawan Prasodjo, President Director of Perusahaan Listrik Negara (PLN) added: "Our collaboration with Mubadala Energy underscores our commitment to enhancing Indonesia's energy landscape through strategic collaborations.

"We look forward to the study results, which will guide us in creating lasting economic and infrastructure benefits for Indonesia and beyond."

The collaboration aligns with Indonesia's broader energy goals, supporting sustainable growth and contributing to national energy security.

Furthermore, it reflects a shared commitment to innovation, sustainable development, and value creation, in line with the drivers of the energy transition and the Indonesian and UAE Governments’ net zero targets.