JAKARTA (TheInsiderStories) – The Japanese oil and gas producer, Inpex Masela Ltd., and state-owned firm, PT Perusahaan Gas Negara Tbk (IDX: PGAS), signed a purchase of gas from the Abadi refinery project in Masela Block, Maluku. The deal is part of the the Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas)’ long term vision to have a production 12 billion cubic feet per day by 2030.
The president director of Inpex Masela, Akihiro Watanabe, said last week, the signing was in line with the Indonesian government’ policy in utilizing natural resources effectively for domestic interests. Last February, the company has signed an agreement with PT Perusahaan Listrik Negara and PT Pupuk Indonesia to supply gas for a gas-fired power plant operated by the state-owned utility producer and the refinery with the fertilizer manufacturer.
The development of the Abadi LNG Project in Tanimbar Islands, Maluku, has proven reserves of up to 18.5 trillion cubic feet (TCF) and 225 million barrels of condensate. This project will become one of the important pillars as an ‘engine of growth’ capable of sustainably supporting industrial needs in Indonesia.
With projected production of liquefied natural gas (LNG) of 9.5 million tons per year (MTPA) and natural gas of 150 million cubic feet per day (MMSCFD), the development is included in the National Strategic Project which is targeted to start production in 2027.
In October 2019, Inpex and Dutch’ Shell has signed the amandment of Masela Block contract until 2027. Abadi is the first large-scale integrated LNG development project operated by Inpex in Indonesia. 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 to Inpex’ CEO Takayuki Ueda and Shell‘ representatives at Merdeka Palace, Jakarta. The revision was a follow-up the head of agreement signed on June 16, 2019, in Tokyo, Japan.
According to him, Abadi project will have an impact of around $153 billion which will be added to Indonesia’ GDP at the end of the project until 2055.
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