Indonesian state-owned oil and natural gas company Pertamina is reportedly considering buying a stake in the Abadi floating liquefied natural gas (FLNG) project located in the 3,221km² Masela block in the Arafura Sea.
At present, the project is being developed by oil and gas company Inpex and Royal Dutch Shell, Reuters reported.
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The Japanese company Inpex is planning a 20-year extension to operate Masela up until 2048 from the existing permit scheduled to expire in 2028.
Pertamina said it is interested in owning a stake in it, stating Masela block’s large potential.
Production at the field is expected to begin in 2022.
Inpex did own a 90% interest in the field, but transferred 30% to Shell in July 2011. The remaining 10% is owned by PT EMP Energi Indonesia.
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By GlobalDataA production sharing agreement covering 30 years for the field was signed in November 1998 and the development plan was submitted in September 2008 to the Indonesian Government authority BPMigas, which is responsible for oil and gas upstream business.
The approval was given in December 2010.
First production of gas from the Abadi is expected in 2018 with an initial output of 2.5 million tonnes of LNG annually and condensate of 8,400 barrels per day.
Image: Abadi FLNG project is located in the 3,221km² Masela block. Photo: courtesy of Inpex Corporation.
