Maluku Governor Murad Ismail supports the plan of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) to accelerate the construction of the Abadi LNG Project, Masela Block in 2021. The government encourages the integrated liquefied natural gas (LNG) project to be integrated. it could start operating in 2026, sooner than originally planned in 2027.
the Masela Block
In its official statement, SKK Migas stated that the Maluku Governor's support was conveyed when he met with the Head of SKK Migas Dwi Soetjipto on Sunday (March 8). The meeting discussed a number of strategic plans for the development of the Abadi LNG Project, the Masela Block.
"In the meeting, at the same time, we discussed the acceleration of land acquisition and the readiness of the local workforce, because the planned infrastructure development for the Masela Block has begun in 2021," Maluku Governor Murad Ismail said in an official statement from SKK Migas, Monday (March 9).
He added, his party would not complicate the licensing process and would be involved in land acquisition efforts. Currently, he has also given permission to use forestry land that will be used for the construction of the Abadi Project production facility, the Masela Block, which is in the form of an LNG refinery.
At present, the Provincial Government through the Governor of Maluku has issued recommendations for 900 to 1,000 hectares of land. The land is expected to accommodate the construction of a gas processing facility of 9.5 million tons per year / MTPA.
"The interests of Maluku so that this national strategic project can take place because it will provide a multiplier effect (double impact) for the regional economy, as well as creating jobs. We must be optimistic that the Masela Block Project will have a positive impact on the people and the Maluku region, "Murad stressed.
Dwi Soetjipto
Head of SKK Migas Dwi Soetjipto revealed that the process of land acquisition and licensing is usually an obstacle in investment. However, the support of the Governor of Maluku and the acceleration of the development of the Abadi Masela Project will have a positive impact on the upstream oil and gas industry as a whole. This gives a signal that licensing and land acquisition are no longer an investment problem.
"So what is happening in the Abadi Project is expected to convince investors, especially world-class oil and gas companies to invest in technology and technology in Indonesia. Efforts to realize the production target of 1 million barrels per day (BPD) must be supported by a good investment climate, "he said.
At present, Inpex is still carrying out an environmental impact analysis (EIA) survey for onshore LNG refineries and Floating Production Storage and Offloading (FPSO) facilities. The EIA survey process has been carried out by Inpex since November 2019 and is targeted to be completed within the next year, after going through a survey in the dry and rainy season.
During the construction phase, Inpex must undertake a number of activities, including the construction and operation of underwater gas wells and the construction of the Subsea Umbilicals, Risers and Flowlines (SURF) facilities off the Arafura coast. Furthermore, Inpex also built a production facility, FPSO, underwater gas pipeline from the FPSO to a gas receiving facility (GRF) on land, and an LNG plant on land.
The Abadi project is projected to produce 9.5 million tons of gas per year in LNG and 150 million standard cubic feet per day / mmscfd for pipeline gas. Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the Abadi LNG Project was still targeted to operate in 2027.
However, his party encourages this gas project to operate faster in 2026, if it is indeed possible to do so. This is so that the country will immediately receive revenue from this project. To be able to speed up the operating schedule in 2026, Dwi explained that the final investment / FID decision must be completed by the end of 2021.
While project construction is targeted to begin in 2021 from the plan in 2022. In addition to working on Amdal, Inpex is holding an auction to carry out front end engineering design work. / FEED and FEED are targeted to be completed by the end of 2021.
Investor Daily, Page-9, Wednesday, March 11, 2020
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