INPEX Masela, Ltd., the operator of Masela block, has signed a long-term supply gas deal with two state-owned firm, PT Perusahaan Listrik Negara (PLN) and  PT Pupuk Indonesia - Photo by INPEX

JAKARTA (TheInsiderStories) – INPEX Masela, Ltd., the operator of Masela block, has signed a long-term supply gas deal with two state-owned firm, PT Perusahaan Listrik Negara (PLN) and  PT Pupuk Indonesia. The company owned by Japanese oil producer, INPEX Corporation and Dutch’ Shell Upstream Overseas Ltd.

The agreements were signed in the presence of Arifin Tasrif, minister for energy and mineral resources (EMR), in Jakarta on Thursday (02/20). The sales and purchase agreements for the long-term Liquefied Natural Gas (LNG) and natural gas supply, including LNG to natural gas-fired power plants operated by PLN and natural gas (150 million standard cubic feet per day) to a coproduction plant, which Pupuk Indonesia plans to construct.

The minister requested the Abadi LNG project at the Masela Block to accelerates the construction from original targeted to be on stream in 2027 go faster in 2026. In addition, head of the Special Task Force for Upstream Oil and Gas Activities (SKKMigas), Dwi Soetjipto, promised to speeding up the construction from earlier starting 2022.

In October 2019, Inpex and Shell has signed the amandment of Masela Block contract until 2027. INPEX said, this signing marks the execution of a formal agreement on the production sharing contract terms has previously agreed and announced as part of the approval of the project’ Revised Plan of Development by the government in July 2019.

Abadi is the first large-scale integrated LNG development project operated by INPEX in Indonesia. The Abadi gas field features excellent reservoir productivity and contains significant resource volumes, raising expectations of efficient development and stable LNG production operations over the long-term.

INPEX will continue to work closely with its partner Shell to deliver a globally competitive onshore LNG development beginning with preparations to commence FEED (Front End Engineering Design).

The producer is one of Japan’ largest exploration and production company and a mid-tier E&P player just behind the world’ oil majors. The company is currently involved in approximately 70 projects across 20 countries.

In July 2019, President Joko Widodo handed over the PoD of Masela Block Oil and Gas Project in Tanimbar Islands, Maluku Province to INPEX’ CEO Takayuki Ueda and Shell‘ representatives at Merdeka Palace, Jakarta.

The revision of PoD was a follow-up the Head of Agreement signed on June 16, 2019, in Tokyo, Japan. The next step Masela Block development is Final Investment Decision.

According to him, Abadi project will have an impact of around US$153 billion which will be added to Indonesia’ GDP at the end of the project until 2055.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com