Abadi LNG Project in Masela Block Should Begin Soon, Says Jokowi

JAKARTA, KOMPAS.com – Indonesia’s President Joko “Jokowi” Widodo pressed for starting the Abadi LNG project in Masela Block, Maluku, soon by roping in a new partner for Inpex Corporation as the operator.

“We continue to push for (the LNG project) in Masela Block. The project was actually ready with Inpex and Shell as operators. However, since the price was low at that time, so one of the investors withdrew, and the project was also delayed,” Jokowi said as quoted by State News Antara on Friday, Sept. 2.

The president made the statement after reviewing the distribution of social assistance at the Olilit Market, Saumlaki, Maluku, according to the Presidential Secretariat YouTube channel.

The Abadi LNG Project is based on an onshore LNG development scheme that the Tokyo-based energy company Inpex Corporation, as the operator, is preparing for development alongside Shell in the Masela Block offshore Indonesia.

Also read: Shell Pulls Out from LNG Project in Indonesia’s Masela Block

However, Shell Upstream Overseas Services Limited, which is a subsidiary of Royal Dutch Shell, withdrew as the operator of the project.

Jokowi said the government has encouraged investors to become the new partner for Inpex Corporation so that the Masela Block project can be started soon.

“The project in the Masela Block will offer an advantage to the Tanimbar Islands in Saumlaki. It will be good for the circulation of money in the region, for GRDP (gross regional domestic product) in the Tanimbar Islands District and Maluku Province. Hence, we will continue to push its operation,” he said.

Also read: Indonesia Achieves Oil and Gas Production Target in First Semester

The Abadi LNG project has been delayed since the withdrawal of the Dutch oil and gas company, Shell Upstream Overseas, in July 2020 despite the project being targeted to start production in 2027.

The project is expected to produce approximately 9.5 million tons of LNG per year and up to approximately 35 thousand barrels of condensate per day. The project will also supply 150 million cubic feet of natural gas per day via pipeline to address the local demand for natural gas.

Before its withdrawal from the Masela Block LNG project, Shell controlled 35 percent of the participating interest (PI) shares while Inpex has the remaining stakes.

Source: State News Antara