Indonesia is looking to offer more oil and gas blocks in 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.
"North Sumatra basin is one of the potential area for further exploration after a major discovery recently in Layaran-1 by Mubadala Energy," Tutuka said.
United Arab Emirates' Mubadala said in December it had discovered a major deep sea gas reserve through Layaran-1 well in South Andaman Block, off northern Sumatra.
Mubadala said the discovery has potential gas-in-place for more than 6 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 Bobara block which went to a unit of Malaysian national energy company Petronas on Tuesday.
The other five, including the Natuna D-Alpha exploration block, were designated as available, Tutuka said.
(Reuters - Reporting by Fransiska Nangoy, Bernadette Christina Munthe; editing by Miral Fahmy)