TIS Energy Group has officially announced the completion of its strategic acquisition of the Sebuku Block from Mubadala Energy. Finalized in Singapore, the transaction marks a major milestone in TIS Energy Group’s upstream portfolio expansion in Indonesia. With this acquisition, TIS Energy assumes operatorship of the Sebuku Block, a mature offshore gas asset with established production and distribution infrastructure, offering strong optimization potential in the years ahead.

Previously, the Sebuku Block was operated by Mubadala Energy (holding a 63% participating interest), alongside TotalEnergies (13.5%), Inpex (13.5%), and PT Dangsanak Buana Sebuku (10% – representing the local government’s PI share). The block is home to the Ruby Field, which has been producing natural gas and condensates exclusively since 2013. Through this acquisition, TIS acquires the operatorship via its purchase of the Mubadala Energy entity that operates the Sebuku PSC, while maintaining room for technical and operational collaboration with existing partners, including TotalEnergies, INPEX, and the local government.

At the heart of the asset is a 312-kilometer subsea pipeline that connects the offshore Ruby Field directly to Senipah in East Kalimantan, a critical route linked to the Bontang LNG facility and other onshore processing facilities in the region. This infrastructure is not merely a transportation asset, but a strategic driver for Infrastructure-Led Exploration (ILX), enabling efficient and cost-effective development of nearby oil and gas reserves.

“We view the Sebuku Block not just as a production asset, but as a gateway for future hydrocarbon development in Eastern Indonesia. The infrastructure in place is world-class, and our role is to unlock its full potential,” said Colin Soh, Deputy Managing Director of TIS Energy Group.

TIS plans to initiate a technical assessment to optimize current production zones, carry out well workovers, and explore new drilling prospects within the Sebuku working area. The company also reaffirmed its commitment to local governments by enhancing community development programs and building local workforce capacity.

“This acquisition is more than just about boosting output — it reflects our confidence in creating long-term sustainable value, supporting Indonesia’s energy transition, and delivering tangible social and economic benefits,” Soh added.

TIS Energy will continue to uphold the Participating Interest (PI) scheme for local governments in compliance with SKK Migas regulations, while strengthening its community development and human capital programs. With this acquisition, TIS Energy demonstrates strong confidence in Indonesia’s upstream investment climate. The company sees long-term opportunities in oil and gas development as a clean, reliable, and scalable energy source aligned with national priorities.

This divestment does not signify Mubadala Energy’s departure from Indonesia; rather, it marks a strategic pivot toward deepening its investment and accelerating development in the country’s promising Andaman region.

Sebuku Block

The Sebuku PSC is located in the Makassar strait, about 300km south of Balikpapan city, offshore eastern Kalimantan.

The PSC contains the Ruby gas field that was discovered in 1975 and was brought into production in October 2013. The field was developed using two bridge-linked platforms: a Wellhead Platform (WHP) and a Production and Living Quarter’s Platform (PQP). The gas is transported via a 312km pipeline to the onshore Senipah terminal that is a part of the Mahakam Offshore PSC. The terminal provides separation and processing facilities, with inlet gas compression installed to improve recovery. The gas is reportedly sold to PT Pupuk Kaliminantan Timur, for use in a fertilizer plant.

Production from the field peaked at about 100MMScf/d but has declined over recent years, with 2014 H1 production averaging just over 40 MMscf/d. 

It is likely to decline further from here, with production likely to cease before the end of the current PSC in September 2027.

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