Bloomberg filepix for illustration purpose only.

JAKARTA (Feb 20): Indonesia is looking to offer more oil and gas blocks in the North Sumatra basin this year, following a major discovery by Mubadala Energy in a bid to accelerate gas production, a senior energy ministry official said on Tuesday.

The energy ministry is currently reviewing potential energy blocks for auction this year, director general for oil and gas Tutuka Ariadji told reporters.

"[The] North Sumatra basin is one of the potential areas for further exploration, after a major discovery recently in Layaran-1 by Mubadala Energy," Tutuka said.

United Arab Emirates’ Mubadala said in December that it had discovered a major deep sea gas reserve through the Layaran-1 well in South Andaman Block, off northern Sumatra.

Mubadala said the discovery has potential gas-in-place for more than six trillion cubic feet (tcf), which according to analysts was the world's second-largest deep water discovery last year.

Tutuka did not disclose how many blocks will be offered this year, but said the first tender round will take place mid-May.

Out of 10 oil and gas blocks offered in 2023, five were awarded to contractors, including the Bobara block, which went to a unit of Malaysian national energy company Petroliam Nasional Bhd (Petronas) on Tuesday.

The other five, including the Natuna D-Alpha exploration block, were designated as available, Tutuka said.