Mubadala Energy enters US market with 24.1% stake in Kimmeridge’s SoTex

Mubadala Energy, based in Abu Dhabi, has entered the US upstream gas and liquefied natural gas (LNG) sector by acquiring a 24.1% stake in SoTex HoldCo through new equity issuance.

The move enhances Mubadala Energy’s global gas portfolio and aligns with the United Arab Emirates' (UAE) 2050 net-zero ambition.

SoTex, owned by Kimmeridge, includes Kimmeridge Texas Gas and Commonwealth LNG.

Kimmeridge Texas Gas operates in the Eagle Ford, South Texas, while Commonwealth LNG owns a 9.3 million tonnes per annum LNG facility at Calcasieu Pass, Louisiana.

Mubadala Energy CEO and managing director Mansoor Mohamed Al Hamed said: "As our first major investment in the US this transaction offers a significant platform for future growth in one of the world's most important energy hubs.

“The investment also highlights our strong position to accelerate our expansion across the gas value chain and build on our strategic international portfolio. We are excited about the long-term opportunities this partnership offers, in line with our strategy to play a proactive role in the energy transition and grow our global gas portfolio."

Kimmeridge aims to create an integrated gas independent in the US to meet global LNG demand.

Kimmeridge Texas Gas currently produces more than 500 million cubic equivalent per day, with plans to grow to 1.5 billion cubic feet equivalent per day by 2031.

Kimmeridge managing partner Ben Dell said: "Mubadala's investment and unwavering support represent a significant milestone in the realisation of our wellhead-to-water strategy, accelerating Commonwealth LNG's path to final investment decision (FID)."

Commonwealth LNG is finalising pre-FID workstreams, with the first LNG offtake expected in 2029.

Mubadala Energy's investment aligns with its strategy to invest across the gas value chain globally. The transaction is pending customary regulatory approvals before closing.

In May last year, Mubadala Energy made a new gas discovery at its Tangkulo-1 exploration well in the South Andaman block offshore North Sumatra, Indonesia.

The well was drilled in 1,200m of water to a total depth of 3,400m and successfully encountered a gas column measuring 80m within an Oligocene-aged sandstone reservoir.

Mubadala Energy operates the South Andaman Gross Split production sharing contract with an 80% working interest, while Harbour Energy holds the remaining 20% as a joint venture partner.

"Mubadala Energy enters US market with 24.1% stake in Kimmeridge’s SoTex" was originally created and published by Offshore Technology, a GlobalData owned brand.