UAE-based Mubadala Energy is targeting a Final Investment Decision (FID) on the Tangkulo gas field development, located in the South Andaman block offshore Aceh, Indonesia, within September 2026. Indonesia’s upstream oil and gas regulator SKK Migas reportedly sent a formal letter to the operator requesting FID confirmation within September, following the outcome of an August 4, 2026 meeting. The FID was originally targeted for June 2026 but was pushed back to September due to local issues in Aceh and delays in a stake transfer process. As of September 19, it has not been confirmed whether the FID has actually been signed, and the process appears to be ongoing with a target of finalizing it within September.
The Tangkulo gas field is located in the South Andaman block offshore Aceh, near North Sumatra, with Mubadala Energy serving as operator holding an 80% stake. A stake transfer process is underway for the remaining 20% previously held by Harbour Energy, and the delay in this transfer is reported to have affected the FID timeline. The development concept involves subsea satellite wells producing gas that is routed to an FPSO (Floating Production Storage and Offloading) facility, then transported via a dedicated export pipeline to an onshore receiving facility in Aceh — classifying the project not as a purely offshore drilling and production facility but as a gas field development linked to onshore infrastructure.
Gas reserves at the Tangkulo-1 discovery are estimated at more than 2 trillion cubic feet. Target production is approximately 300 MMSCFD (Million Standard Cubic Feet per Day) of gas plus 7,000 BOPD (Barrels of Oil Per Day) of condensate, with first production targeted for 2028.
The project aligns with the Indonesian government’s policy goal of offsetting declining domestic gas production through new field development and promoting resource development in the Aceh region, and is notable for the degree of direct government involvement — with SKK Migas issuing a formal letter to press for FID timing.
The push toward an FID for the Tangkulo gas field illustrates the Indonesian government’s active involvement in accelerating investment decisions on new gas projects. The three-month delay from the original June target — driven by a combination of local issues in Aceh and the stake transfer process — illustrates how ownership changes and the coordination of local interests can affect project timelines in Indonesia’s offshore gas field development. A production target of 300 MMSCFD could make a meaningful contribution to gas supply in the Aceh region. However, since it remains unconfirmed as of September 19 whether the FID has actually been signed, this should be understood as an ongoing process rather than a settled fact. The subsea satellite well-to-FPSO-to-onshore receiving facility development structure could serve as a reference model for similar offshore gas field developments in Indonesia going forward.
Whether the FID is actually signed and confirmed within September is the most important item to watch. The completion timing of the Harbour Energy stake transfer and the resulting change in ownership structure also warrant attention. In addition, the timing of FPSO ordering and EPC contract awards, and the feasibility of achieving the 2028 first production target, merit continued monitoring.