Reuters reported that Abu Dhabi's Mubadala energy unit plans to develop a gas field in Indonesia with its partners, investing USD 500 million its first project in the south Asian country.

Mubadala said in a statement that the Ruby gas field won approval from Indonesia's upstream oil and gas agency. The field partners are Pearl Oil, a wholly owned subsidiary of Mubadala's Pearl Energy which will have 70% stake in Ruby, Total E & P Sebuku and Inpex South Makassar with both 15% each.

The offshore development will comprise drilling four wells and related facilities and gas will be transported to shore via 14 inch, 312 kilometers pipeline to a receiving terminal. The buyer of the gas is PT Pupuk Kalimantan Timur which operates a fertilizer plant nearby. Supply is expected to start in the latter part of 2013.

Mr Barry O Donnell regional vice president of Mubadala Oil & gas and president of Pearl Energy said that Ruby is our first full field, operated development project in Indonesia and as such it is an important project for us to have brought to the point of sanction.

(Sourced from Reuters)