Shell has obtained a 30% stake in the Abadi floating liquefied natural gas (FLNG) project, offshore Indonesia, from Japanese operator Inpex.

The field, which is located in the Masela block, will be developed using an FLNG solution. Inpex is yet to award the front end engineering and design contracts for the project.

The project is scheduled to start production in the first half of 2012 and will have an annual production rate of 2.5 million tonnes in the first phase, reports upstreamonline.com.

The Abadi project is owned by operator Inpex with a 60% stake, while Shell and the Indonesian Government hold 30% and 10%, respectively.