JAKARTA (TheInsiderStories) – The Indonesian Energy and Mineral Resources Minister (ESDM) Ignasius Jonan is urging Inpex Corporation, a giant oil and gas company of Japan, to accelerate the pre-FEED (front-end engineering design) for the development of Masela Block.
“It has been six months since I joined the ESDM (Energy and Mineral Resources Ministry). There is no progress. If it is delayed, I might have to cancel it (project),” Jonan told reporters, after delivering a speech at National Gas Forum in Jakarta on Wednesday morning.
Inpex is currently conducting two options of onshore pre-FEED locations, namely in Aru and Jandena islands.
Minister Jonan has also asked Inpex to prepare two pre-FEED with two capacities, namely 9.5 million tons per annum (MTPA) plus 150 million standard cubic feet (MMSCFD) and 7.5 MTPA plus 474 MMSCFD.
“We (the will make a decision once pre-FEED is done,” Minister Jonan said.
Masela Block is believed to have gas reserves of 10.73 trillion cubic feet (TCF). Currently, Inpex holds 65 percent interest in Masela Block and the remaining 35 percent is owned by Shell. Pertamina has expressed its interest to acquire stakes in the Masela Block.
The existing contract to explore and develop the block will expire in 2028. Inpex has earlier decided to develop offshore LNG processing facilities (FLNG), but the Joko Widodo government decided to build onshore processing facilities, forcing Inpex to restart the plan of development (PoD) as well as FEED of the project.
In addition to developing LNG plant, the Indonesian government is planning to develop petrochemical complex nearby the LNG plant. (BG)