The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) stated that the port construction site for the Abadi liquefied natural gas / LNG project, the Masela Block has been established on Nustual Island, Tanimbar Islands.
This port serves to support the construction of the Abadi LNG Plant. In the official statement of SKK Migas, it was stated that the decision was made in Maluku Governor Decree # 96 of 2020 on February 14, 2020.
Abadi Field natural gas
The construction of the port at an area of about 27 hectares was to support the development and production of Abadi Field natural gas and the provision of facilities and infrastructure, including facilitating the movement of goods including parts.
Nustual Island
SKK Migas Head Dwi Soetjipto said the location on Nustual Island was only for the port, not including for the LNG plant. However, the location of the refinery will probably not be far from Nustual Island.
Dwi Soetjipto
"This is for the port. "The refinery will be near there, right next to the island next to it," he said.
SKK Migas Business Support Deputy Sulistya Hastuti Wahyu said, after the determination of the location of SKK Migas and Inpex Masela Ltd as the Masela Block operator, will cooperate with the National Land Agency (BPN) for the land acquisition process.
"In this land acquisition process, there will be a process of measurement and payment of compensation, which is led by BPN. It is estimated to take around eight months, "he explained.
In the announcement of the Maluku Regional Secretariat, it was also mentioned that the overall land acquisition stage was estimated to take around eight months. Meanwhile, the construction period for the port of liquefied natural gas refineries is estimated to reach 58 months.
SKK Migas Deputy for Operations Julius Wiratno added, Nustual Island could not be the location of the Abadi LNG Refinery because of its very small size. This island can only be used for jetty or other functions in accordance with the details of the results of the front end engineering design / FEED later.
"For LNG refineries requires a very large land area of almost one thousand hectares, if coupled with a buffer zone can be around 1,400 hectares," he explained.
Inpex Masela Ltd
In addition to land acquisition, currently, Inpex also conducts FEED auctions and makes guidelines for the auction plan for Engineering, Procurement, and Construction / EPC packages. Both will be used as parameters to determine the Final Investment Decision / FID.
According to Julius, FID is targeted to be carried out in the fourth quarter of 2022. If everything goes according to plan, the construction of the Masela LNG Project will be able to begin in the first quarter of 2023. The existence of the Corona Virus spread, he admitted, will have an impact on the ongoing process. However, this can still be anticipated.
"The consequence that appears is a matter of time management that is a little taken up. It takes about one month to clean survey equipment with disinfectants, especially equipment from countries exposed to Covid-19. This survey equipment is very important because it supports direct data for FEED purposes, "explained Julius.
Covid-19
Despite the time constraints, he stressed that SKK Migas remains committed to escorting the project to completion as planned to meet the oil production target of 1 million barrels per day (BPD) by 2030.
SKK Migas targets the Abadi Project to begin production in 2027. The project is projected to produce 9.5 million tons of gas per year in LNG and 150 million cubic feet per day / mmscfd for pipeline gas.
INPEX Corporate Communication Manager Masela Moch N Kurniawan said that his office was aware of them. For this reason, his party appreciates, thanks and supports the decision.
"As operators of the Abadi LNG Project, we will continue to coordinate and communicate with SKK Migas to continue the land acquisition process for the LNG refinery port based on the Governor's decree. So we can realize the stages of the Abadi LNG project in accordance with the POD approved by the Indonesian government, "he said.
Investor Daily, Page-9, Wednesday, March 18, 2020
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