Indonesia's Energy Future: SLB & Mubadala Tap Massive Deepwater Gas

HOUSTON, TX – February 12, 2026

A strategic alliance is set to unlock one of Southeast Asia's most significant natural gas discoveries, as global energy technology firm SLB has been awarded a suite of contracts by Abu Dhabi-based Mubadala Energy. The deal centers on the Tangkulo deepwater development in the Andaman Sea, a project poised to become a cornerstone of Indonesia's long-term energy security and economic ambitions.

Under the agreement, SLB will provide a comprehensive range of integrated drilling and well services for the project, which aims to deliver first gas before the end of 2028. This partnership marks a critical milestone in bringing a world-class gas resource from discovery to production at an accelerated pace, signaling a new era of energy development for the region.

A Game-Changer for Indonesia's Energy Security

The Tangkulo project is more than just a commercial venture; it is a linchpin in Indonesia's national energy strategy. The archipelagic nation is facing a steep rise in energy demand, with projections indicating natural gas consumption could reach 7.2 billion cubic feet per day (bcfd) by 2050. To meet this demand and fulfill its climate commitments, the government is aggressively pursuing a transition from coal to natural gas, which it views as a critical bridge fuel. The national energy plan aims for gas to constitute 25% of the total energy mix by 2030.

The discoveries in the South Andaman block, operated by Mubadala Energy, are pivotal to achieving these goals. The Tangkulo-1 well alone confirmed over 2 trillion cubic feet (TCF) of gas-in-place, complementing the colossal Layaran discovery in the same block, which holds an estimated 8 TCF. Together, they represent a potential resource of over 11 TCF, enough to reshape Indonesia's domestic supply landscape and reduce its reliance on costly LNG imports.

“This contract award reflects Mubadala Energy’s strategic vision to develop Indonesia’s offshore resources responsibly and efficiently,” said Abdulla Bu Ali, president director of Mubadala Energy Indonesia, in a statement. “The Tangkulo field is a cornerstone project in our Southeast Asia portfolio and underscores our role in supporting Indonesia’s long-term energy security and economic growth.”

The project's timeline is ambitious, with a final investment decision (FID) targeted for June 2026. Indonesian energy regulators, SKK Migas, are actively supporting the project's acceleration to ensure the gas flows to domestic industries and power plants by the 2028 deadline, bolstering national economic development.

Mubadala's Strategic Ascent in Southeast Asia

For Mubadala Energy, the Tangkulo development cements its transformation from a regional explorer to a major energy developer in Southeast Asia. The company holds an 80% working interest in the South Andaman Gross Split PSC and has secured the largest net acreage position in the area. The back-to-back multi-TCF discoveries at Layaran and Tangkulo have turned its Indonesian portfolio into a strategic growth engine.

The Tangkulo project serves as a blueprint for Mubadala's integrated development philosophy. By partnering with a technology leader like SLB, the company is ensuring it has the technical capabilities to navigate the challenges of deepwater development efficiently and safely. This move underscores a long-term commitment to the region, focused on monetizing significant gas resources to supply a growing and energy-hungry market.

The Technological Edge in Deepwater Operations

Developing gas fields in deepwater environments presents immense technical and logistical challenges. The contracts awarded to SLB are designed to mitigate these complexities through an integrated service model. Instead of managing multiple contractors, Mubadala will leverage SLB's comprehensive suite of services, covering the entire well life cycle from directional drilling and cementing to well completions and testing.

“Deepwater developments demand disciplined execution and integrated delivery,” noted Sherif Shohdy, president of SLB's Asia division. “By combining advanced drilling technologies, real-time insights and strong local expertise, we are well positioned to support safe and efficient offshore operations and accelerate progress toward first gas.”

A key element of this approach is the deployment of SLB's advanced offshore technologies. The project will utilize real-time downhole monitoring systems, which provide critical data from the drill bit to engineers on the surface. This allows for immediate adjustments to drilling parameters, reducing operational risk, improving well placement for maximum resource extraction, and ultimately strengthening the project's economic viability.

This integrated model is designed not only to streamline execution but also to enhance safety and reliability—critical factors in complex offshore operations. By bundling services and technology, the partnership aims to create a more efficient and predictable development process.

Powering a Dynamic Regional Market

The Tangkulo development is unfolding within a booming offshore market in Southeast Asia. According to analysis from Rystad Energy, offshore gas production in the region could unlock as much as $100 billion in value by 2028, driven by major deepwater projects and recent discoveries. Indonesia is at the heart of this growth, with its vast, untapped resources drawing significant international investment.

The successful and timely execution of the Tangkulo project will serve as a powerful case study for future developments. The collaboration between Mubadala Energy's strategic vision and SLB's technological prowess demonstrates a model for unlocking complex hydrocarbon resources responsibly. As Indonesia continues on its path toward a more sustainable and secure energy future, the gas set to flow from the Andaman Sea will play an indispensable role in powering its progress.