Japan' INPEX CORPORATION (INPEX), through its subsidiary INPEX Masela, Ltd and its partner British' Shell Upstream Overseas Ltd., signed the amandment of Masela Block contract Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) on Tuesday (10/15) - Photo by INPEX

JAKARTA (TheInsiderStories) – Japan’ INPEX CORPORATION (INPEX), through its subsidiary INPEX Masela, Ltd and its partner British’ Shell Upstream Overseas Ltd., signed the amandment of Masela Block contract Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) on Tuesday (10/15).

Indonesian minister and deputy minister for energy and minerals resources Ignasius Jonan and Archandra Tahar, witnesses the signing ceremony in Jakarta. It said, the contract including 7-year additional time allocation and 20-year extension for the Abadi LNG Project.

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 Abadi LNG Project’ Revised Plan of Development by the government in July 2019

The Project 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).

INPEX 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.

Last July, Indonesian 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.

“We give report to President that the government’s approval to Masela Block construction has been given. We report and submit the agreement in front of President,” Jonan said after the meeting.

While, Soetjipto says President welcomed the large-value investment. The project will be very meaningful for Indonesia, he added.

“President expected that Inpex will commit to what has been stated in PoD and what is required by the ministry,” he said.

Is Known, Revision of PoD reported to Widodo was a follow-up the Head of Agreement (HoA) signing on June 16, in Tokyo, Japan. The next step Masela Block development is Final Investment Decision (FID).

Ueda welcomed to PoD revision process. He hopes that this project can last until 2055.

“I think this project is very good for the company, but it will also contribute greatly to Indonesian economy,” Ueda said.

He added Inpex is committed to carrying out what was agreed upon in PoD, including related local content and use the native labor in the local area. He believes, this project will also have a multiplier effect on the Indonesian economy.

“I give an example, The project will have an impact of around US$153 billion which will be added to Indonesia’ GDP at the end of the project if the project lasts until 2055. It will also contribute to employment in this country. In relation to multiple effects, this project will create around 73,000 employment,“ he explained.

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