Inpex Starts Drilling on Masela Block in 2024

    The Ministry of Energy and Mineral Resources (ESDM) has approved further drilling at the Masela Block Abadi LNG project to begin next year after the second revision of the development plan was approved.

    The second revision of the development plan or Plan of Development (PoD) I of the Masela Block Abadi LNG project itself has been approved by the Minister of Energy and Mineral Resources, Arifin Tasrif.

    In addition to drilling plans, the ministry is targeting a final investment decision (FID) for projects with a current estimated value of around US$19.8 billion will also be completed next year.

    Several crucial points in the PoD include a commitment to commercial operations by the end of 2029, and initial plans to install exhaust gas capture facilities or Carbon Capture and Storage (CCS).

Drilling Girl

    In the new development proposal, SKK Migas reported that additional investment for CSS is estimated to be in the range of US$ 1 billion or equivalent to IDR 15.52 trillion at an exchange rate of IDR 15,520 per US dollar. For other investments in upstream oil and gas activities, there has not been much change.

    Masela Block Operator, Inpex Masela Ltd. currently negotiating with the Indonesian government regarding the need to re-amend the production sharing contract or PSC for the Masela Block Abadi LNG project.

    It is hoped that the contract amendment will make the economics of the national strategic project (PSN) more attractive at the time of Inpex's commitment to include CCS facilities in the development plan that was sent in April 2023. 

    Inpex targets development costs to be reduced optimally with an Internal Rate of Return (IRR) in the range of 10%.

    Inpex proposed that CCS installation and operation costs could be charged to the production-sharing contract that is currently being amended. The plan is that operating costs will be paid directly through the sale of gas and condensate from future field projects.

    The Masela Block development project will use a combined land and sea system to ensure that the investment value of the existing field development plan does not change much.

Drilling Girl

    Through this combination system, seabed drilling will be carried out at a depth of 600 meters, and the well depth will be 4,000 meters. The gas obtained will be processed in a floating building, namely floating production, storage, and offloading (FPSO) to be purified from other substances.

    After being purified at the FPSO, the gas will be channeled to the liquefied natural gas (LNG) refinery on land via the gas export pipeline (CEP) which is 175 kilometers away and through sea trenches. The Masela Block is one of the largest oil and gas field prospects in Indonesia. 

    Production is estimated to reach 1,600 million cubic feet per day (MMscfd) of gas or the equivalent of 9.5 million MTPA and 150 MMscfd of piped gas, as well as 35,000 barrels of condensate per day 4 (BCPD).

    The project, which was originally estimated to require investment costs of up to US$ 19.8 billion, is Inpex's second largest gas management asset, after the Ichthys LNG Project in Australia.

The government wants to accelerate the Masela Gas Project

    Commission VII of the House of Representatives (DPR) of the Republic of Indonesia summoned SKK Migas and Inpex Corporation in a closed Working Committee Meeting, Monday (December 12). One of the points discussed at the meeting was the acceleration of the Abadi Masela project.

the Abadi Masela project

    When met at the DPR Building, Inpex's management was reluctant to comment on the discussions at the meeting. The Council also cannot provide an overview regarding the preparations for the Masela project in the near term.

Blogger Agus Purnomo in SKK Migas

    Deputy for Development Exploration and Management of the SKK Migas Work Area, Benny Lubiantara, gave a brief description. One of the discussions discussed in the Working Committee is how to speed up the Masela project so that it starts immediately.

"The head of SKK Migas Dwi Soetjipto said that this project is taking place in parallel, so there is no waiting for more, so activities will begin immediately in early 2023," said Benny Lubiantara.

Shell

    While waiting for Shell replacement, which is processing the sale of its 35% participating interest, Benny explained, a number of other activities in the Masela Block are still taking place in parallel. One of them includes Carbon Capture Storage (CCS) and Carbon Capture Utilization and Storage (CCUS) technologies in the Plan of Development (PoD) plan.

"The study already exists, it must go forward," said Benny Lubiantara.

    Regarding the value of Shell's Participating Interest (PI) that is being bid by Pertamina, Benny could not comment. Benny said the PI valuation was based on a business-to-business (B2B) process between Shell and Pertamina.

    Head of SKK Migas Dwi Soetjipto hopes that in December 2022 the revision of the PoD which already includes the implementation of CCS/CCUS will be entered soon.

"Based on the results of a study regarding the CCS/CCUS facility that will be implemented in the Abadi Masela Block, it requires an investment of US$ 1.2 billion to US$ 1.3 billion," said Benny.

    Not long ago, BUMN/State-Owned Enterprise Deputy Minister Pahala Nugraha Mansury said that the due diligence process for Pertamina's takeover of Shell's 35% participating interest in the Masela Block could be completed in the first quarter of 2023. According to Nugraha Mansury, the due diligence process will be followed by the submission of a binding offer by Pertamina to be evaluated by Shell.

Kontan, Page-12, Tuesday, Dec 13, 2022

Petronas Interested in Working on the Masela Block

    The Special Task Force for Upstream Oil and Gas Activities (SKK Migas) stated that a Malaysian oil and gas company, Petronas, expressed interest in working on the Masela Block, replacing Shell, which had left the largest gas project in Indonesia.

Petronas

    Petronas is also interested in entering into cooperation with Pertamina in terms of replacing Shell if possible. This is the latest development regarding Shell," said Head of SKK Migas Dwi Soetjipto in a hearing with Commission VII.

The Masela Block

    Apart from Petronas, previously there were two companies that were known to be interested in replacing Shell in acquiring a 35% stake in the Masela Block, namely Pertamina and ExxonMobil. Dwi said Pertamina had opened the Masela Block data room this November. It is hoped that Pertamina can submit a Non-Binding Offer to Shell.

ExxonMobil

    The government is targeting that discussions on the acquisition of Shell's participating interest (PI) in the Masela Block by Pertamina can be completed this year. One of the main conditions for reaching an agreement is the certainty of PI's acquisition value. According to Dwi, Pertamina must find an agreement with Shell to get into the Masela project.

Shell

    According to Dwi, Shell already has a minimum value base that must be prepared by Pertamina. This value is the total funds that have been spent by the company while being Inpex's partner in Masela.

Blogger Agus Purnomo in SKK Migas

"Pertamina is negotiating with Shell. SKK Migas monitors and provides direction so that Shell sells at moderate prices. To keep the project going. We wrote to Shell to support the divestment. Around US$1.4 billion has been spent by Shell," Dwi said.

Inpex Corporation

    Meanwhile, for Pertamina, there is ExxonMobil which was also offered by Inpex to conduct the study. SKK Migas said Dwi hopes that there will be opportunities for cooperation between Pertamina and ExxonMobil to open again, instead of the scent of competition. However, it all comes back to the management of each company whether to continue the collaboration as it has been in the Cepu block.

"If all this time ExxonMobil is also conducting studies, it could be a potential collaboration with Pertamina. But we'll see now that each study has its results, whether we want to continue or not," said Dwi.

IDD Project

    Meanwhile, Dwi also stated that the Indonesia Deepwater Development (IDD) project is expected to start running in early 2023, due to the certainty that the replacement operator for PT Chevron Pacific Indonesia will be completed by the end of this year.

Chevron

“Chevron has decided to leave the IDD project. Now there is a potential replacement. IDD could run next year," said Dwi.

ENI

    According to information, an Italian oil and gas company, ENI, is rumored to be controlling 62% of Chevron Pacific Indonesia's (CPI) participating interest in the Indonesia Deepwater Development (IDD) Gas Project. The IDD project has the potential to produce up to 844 million standard cubic feet of gas per day (MMscfd) and 27,000 barrels of oil per day (BOPD). The plan is for the project to be targeted onstream in the fourth quarter of 2027.

Investor Daily, Page-4, Thursday, Nov 17, 2022

SKK Migas Expects Onstream Schedule to Match POD

    The Abadi gas field project in the Masela Block is delayed in production in 2030. Meanwhile, the Special Task Force for Upstream Oil and Gas Business Activities or SKK Migas still hopes that the onstream schedule will match the development plan.

Inpex Masela Ltd and Shell

    The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) asked Inpex Masela Ltd and Shell as the operator of the Masela Block to carry out the Masela Block Liquefied Natural Gas (LNG) investment in accordance with the approved Plant of Development (PoD). The Masela Block LNG project is agreed to be completed and start production by the end of 2027.

Blogger Agus Purnomo in SKK Migas

    The Deputy of Operations for the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas), Julius Wiratno stated that his party continues to push for the project to be completed in accordance with the approved PoD. SKK Migas also said that it had not yet received a revision proposal from Inpex.

Inpex

"SKK Migas to this day continues to push for implementation according to the approved PoD, for immediate production as soon as possible. We have not received a revision proposal from Inpex at all and we are still fighting for acceleration efforts," said Julius.

    Julius emphasized that the government through SKK Migas is still encouraging Inpex's investment in Masela, this must be realized immediately. Because some preparatory work has been and is being started, such as the approval of the Environmental and Impact Analysis (AMDAL), metocean surveys, and land acquisition.

Takayuki Ueda

    Previously, Inpex CEO, Takayuki Ueda explained, that Inpex is conducting comprehensive size studies such as the introduction of carbon capture, utilization, and storage facilities, known as CCUS.

the Masela Block LNG

    The CCUS installation is intended to make the Masela Block LNG project more environmentally friendly, but the project could be delayed until 2030.

"SKK Migas has asked Inpex to immediately revise the POD, if that is what is desired, for us the planning team, in particular, can immediately conduct a review and evaluation," explained Julius.

    As is known, currently Inpex Masela Ltd and Shell as the operator of the Masela Block are revising the PoD of the oil and gas working area that is included in the National Strategic Project (PSN). The PoD revision relates to the inclusion of CCUS. This is done so that the assets of the Masela Block in this case the Masela LNG can be said to be competitive because it has green energy requirements.

    The majority of Masela Block's participating shares are 65 percent owned by Inpex Masela. The rest is owned by Shell. But Shell has said it will leave the block. However, the plan failed to materialize because there were no investors who wanted to buy Shell shares.

    In addition to the Masela Block, SKK Migas also hopes that the Indonesia Deepwater Development (IDD) project located in the Kutai Basin, East Kalimantan, can be completed immediately and start production in the fourth quarter of 2025. The IDD project is a development project for five deep-sea gas fields that are carried out in an integrated manner to meet the gas needs of the domestic market and the Bontang LNG Plant. The IDD project has production reaching 844 MMscfd for natural gas and 27,000 barrels of oil per day (BOPD).

the IDD project Chevron

    In the IDD project, Chevron acts as the operator. The company controls 62% of the participating interest or interest (PI). The rest is controlled by ENI with a 20% stake and Sinopec Group 18%. However, the continuation of this mega project is still uncertain. Because, since 2020, Chevron declares to discontinue the IDD project.

ENI

"For this IDD project, the update now is that the operator Chevron Pacific Indonesia (CPI) is still looking for a replacement operator," said Julius.

DIFFICULT MISSION

    On the other hand, the government has targeted oil lifting of 1 million BOPD and gas of 12 BSCFD by 2030. However, this target is impossible to achieve without new large-scale oil and gas projects. Previously, the government through the Directorate General of Oil and Gas together with SKK Migas and cooperation contract contractors [KKKS] had identified the planned production profile of each KKKS and it was known that total oil production would reach 1 million BOPD in 2030.

    The government has also prepared several strategies to increase production, namely routine work programs such as infill drilling/step out in existing fields, and workover/well service. In addition, acceleration of the transformation of resources into production is also carried out, by accelerating new PoDs and pending PODs.

    An energy and oil economist from Trisakti University Pri Agung Rakhmanto said that without a new large-scale oil and gas project the oil lifting target of 1 million bopd would not be possible to achieve.

"To achieve the oil and gas production target of 12 MMscfd and 1 million BOPD, there needs to be a new project on a large scale," said Pri Agung.

    According to him, efforts to increase the production of existing oil and gas fields are not sufficient to achieve the government's ambitious targets.

“If it's EOR, we need EOR on a large-scale oil and gas field. The current EOR has just been done on a small scale. EOR and other efforts can only stop the rate of decline in production in existing fields so that it doesn't decline further," he explained.

    Pri Agung is of the view that this 1 million BOPD is not worthy of being called a target because there is no clarity on the details of the work program. For example, from which field the production target was produced.

    The Executive Director of the Reforminer Institute Komaidi Notonegoro also said the same thing. According to him, without finding large reserves, the target of 1 million BOPD is just wishful thinking.

"To be able to reach 1 million BOPD, it is calculated that additional production from large-scale oil and gas fields or the majority is generated from large-scale investments made by major International Oil Companies [IOCs]," said Komaidi.

Jambaran Tiung Biru in Central Java

    Currently, Indonesia has four giant oil and gas projects, namely, Jambaran Tiung Biru in Central Java, the Abadi Field in the Masela Block in the Arafura Sea, IDD in the Kutai Basin in East Kalimantan, and Tangguh Train 3 in Papua. Unfortunately, these projects are expected to be completed longer than the target set. The reason is, recently, the foreign oil and gas giant that manages this mega project has stated that it will leave Indonesia.

Bisnis Indonesia, Page-4, Wednesday, February 23, 2022

To Increase Liquefied Natural Gas Business, PGN Collaborates with JCCP

    PT Perusahaan Gas Negara Tbk (PGN) is working with the Japan Cooperation Center Petroleum (JCCP) to study and improve the gas value chain, especially the liquefied natural gas / LNG business. The target is that the two parties will agree on a Joint Project according to the existing business potential.

    PGN's Director of Strategy and Business Development Syahrial Mukhtar said this collaboration also aims to promote the development of natural gas management technology. Through this cooperation, the increase in the gas value chain or LNG business is carried out based on the experience of Inpex, one of the Japanese oil and gas companies under the auspices of JCCP, with the Naoetsu model. The collaboration of JCCP, Inpex, and PGN is expected to increase capabilities and optimization in more real cooperation in the future.

Inpex Corporation

"In the next three years, the topic of the Joint Project will be mutually agreed upon according to existing business needs and potentials," he said.

    He explained that Naoetsu itself is the name of Inpex's LNG terminal. Through this model, study the technical, operational, business, and safety aspects of the Naoetsu Terminal can be one of the bases for learning and implementing collaborative natural gas projects in Indonesia. 

    In this collaboration, JCCP as the executor will prepare a work plan, project implementation schedule, and estimate the number and project description for this year. According to him, for 2020-2021, there are two collaborations with the JCCP, namely the Naoetsu Seminar and the Technical Cooperation Program.

"This year's Technical Cooperation Program is the LNG Joint Study in Arun Aceh and LNG bunkering throughout Indonesia. In its implementation, this joint study involves INPEX, which is a partner of PGN in the supply of LNG to Myanmar through the Arun Terminal, "explained Syahrial.

    The Naoetsu Seminar program is targeted to introduce Inpex's natural gas value chain and obtain technical studies on the operations of the Naoetsu Terminal which is located in Nagaoka, Japan. The operational technical study of the Naoetsu LNG Terminal includes underground gas storage in Nagaoka, operational safety, and health at the LNG terminal and pipeline, as well as other commercial issues in the gas business in Japan.

    Inpex is the largest oil and gas company in Japan with global exploration, development, and production projects in 20 countries. Meanwhile, JCCP is a government organization under the auspices of the Ministry of Economy, Trade, and Industry (METI) in Japan and consists of oil and gas companies. 

    Syahrial said that this collaboration was because PGN was looking for partners to implement a Joint Project to improve the domestic natural gas value chain. Meanwhile, Japanese industrial engineering is considered qualified, both in knowledge and technology related to gas chain modernization.

"Until finally this Joint Project was proposed with the JCCP," he said.

Investor Daily, Page-10, Tuesday, Oct 20, 2020

SKK Migas - Inpex Completes Metocean Service Visit for Abadi LNG Project

    SKK Migas together with KKKS INPEX Masela, Ltd. has successfully completed a metocean service visit for the Abadi LNG Project during the Covid-19 pandemic in the waters of the Abadi Field in the Arafura Sea, without any Covid-19 transmission and without any work accidents. 

    The NV NMS Brilliance ship, which departed from Jakarta for the Abadi Field area on September 13 with its personnel and crew for this metocean service visit, arrived back in Jakarta on October 9. The metocean service visit was carried out without having to dock at the port in Tanimbar Islands Regency, Maluku to undergo quarantine.

Blogger Agus Purnomo in SKK Migas

"With this new innovation, inspection and maintenance of 17 marine metocean stations and data collection related to metocean can be done more quickly, which will then be processed and analyzed," said SKK Migas Operations Deputy Julius Wiratno.

Julius Wiratno

    In more detail, the main activities carried out during the metocean service visit are taking, checking, and maintaining equipment and sensors at the metocean observation station, as well as downloading and verifying data and data storage systems, to re-installing sensors and equipment to the metocean observation station.

    Julius said that the metocean service visit activity during the Covid-19 pandemic was very troublesome so there must be new innovations from SKK Migas and Inpex in doing so, such as implementing service visits without anchoring at the Maluku port, enforcing and monitoring anti-COVID 19 health protocols according to World Health Organization standards. (WHO) is strict with the personnel and crew of the ship every day both before leaving, while onboard, and after completing the service visit.

"This success sets a good precedent for the implementation of upstream oil and gas activities in other oil and gas fields during the Covid-19 pandemic," he said.

    Vice President Corporate Services Inpex Masela, Ltd Henry Banjarnahor appreciates the success of this metocean service visit and thanks SKK Migas for its strong support for the implementation of metocean service visits during the Covid-19 pandemic, as well as to the Maluku Provincial Government and Regency Governments. Tanimbar Islands for their extraordinary support so that the metocean service visit took place smoothly and on time.

"This encourages us that other innovations can be planned and carried out after a very careful study, while still paying attention to the established health protocols," said Henry.

    The Abadi Masela project is planned to have a production capacity of 1,750 MMSCFD (9.5 MTPA LNG and 150 MMSCFD of pipeline gas). SKK Migas targets that the Abadi Masela Project is scheduled to produce in 2027.

Investor Daily, Page-10, Monday, Oct 12, 2020

Inpex considers a targeted review of the Abadi LNG project's EIA

Inpex Corporation, the operator of the Masela Block, is considering a review of the schedule for completing the Environmental Impact Analysis (EIA/Amdal) for the Abadi Liquefied Natural Gas (LNG) Project. Even though it continued to roll, the work on the Amdal for this gas project was hampered by the Covid-19 pandemic.

Acting Corporate Communication Manager of Inpex Masela Ltd Moch N Kurniawan said that the EIA study plan for the Abadi LNG Project is carried out in accordance with the work plan schedule that has been approved by the government in the development plan / POD of the Abadi Field, Masela Block. However because it happened the Covid-19 pandemic, his party is considering reviewing the EIA work plan schedule with government approval.

Masela Block

"We are currently discussing with relevant government agencies to take the best steps in mitigating the EIA schedule due to the Covid-19 pandemic," he said.

Kurniawan explained that his party had completed several important activities related to the preparation of the EIA document for the Abadi LNG Project, namely announcements and public consultations, as well as government approval for the Environmental Impact Analysis Terms of Reference (KA ANDAL) document. 

    Currently, the EIA process is in the environmental baseline data collection stage, including environmental baseline surveys in the dry season which has been completed 100% and the wet season which still reaches 60%.

"This is in the framework of the environmental impact analysis and modeling process," said Kurniawan.

To complete the environmental baseline survey for the rainy season, his party will carry out several activities including taking surface water samples, measuring river discharge, and observing marine mammals. To complete the remaining 40% of the wet season environmental baseline, further sampling and/or other methodologies will be carried out which will be consulted with the relevant government authorities.

Kurniawan continued that the next important step was completing the preparation of the Environmental Impact Analysis (ANDAL) document, Environmental Management Plan (RKL), and Environmental Monitoring Plan (RPL).

"After that, the final stage is the assessment and approval of the ANDAL, RKL and RPL documents by the Central Amdal Assessment Commission," he said.

Dwi Soetjipto

Previously, the Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto said that the completion of the Amdal was a requirement so that the Abadi LNG Project could continue to the next stage, including land acquisition. He said that the Amdal survey had stopped due to the Covid-19 pandemic, but is now taking place again.

Meanwhile, regarding land acquisition, Maluku Governor Murad Ismail is committed to facilitating it. The Abadi LNG project is a major project whose development plan was directly witnessed by President Joko Widodo so that the local government will fully support the completion of this project. Moreover, this project is related to the interests of the Maluku people.

Based on SKK Migas data, in addition to Amdal, Inpex is still processing auctions for the work on the front end engineering design / FEED of the LNG plant land facilities, floating production, storage, and offloading / FPSO facilities, gas pipelines, as well as subsea umbilical, riser, and flowline (SURF) facilities

Investor Daily, Page-10, Monday, August 24, 2020

Government Reviewing Masela Block Profit Sharing

The government is considering changing the production share of gas or split in the management of the Masela Block. It seems that the plan is to attract investors to replace Royal Dutch Shell (Shell), which plans to sell the 35% participating interest in the Abadi Gas Field. 

Royal Dutch Shell (Shell)

    Referring to the agreement in the head of agreement (HoA) in 2019, the government and lnpex Corporation as the controlling shareholders of the Masela Block agreed to split the gas distribution by 50% (government) and 50% (lnpex and consortium).

Dwi Soetjipto

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Dwi Soetjipto, assessed that at the time of the continuation of the Shell divestment, his party also saw potential or room for split changes. "We also found points or potentials for this economic project to be in a reasonable government split. We will continue to discuss it," Dwi said.

INPEX CORPORATION

However, he is still reluctant to detail the objectives of the split change and the details of the changes being considered, so it is not yet known whether this profit sharing will increase the government's portion or even increase the INPEX portion. Dwi only said that Masela's liquefied natural gas (LNG) product enthusiasts had reached 50%.

"PLN has expressed an interest of at least 2 to 3 million tons per year (MTPA). From abroad, there are Japan, China, and Taiwan," said Dwi.

With regard to Shell's plan to leave, the Ministry of Energy and Mineral Resources (ESDM) noted that 32 companies are interested in replacing Shell.

Investor interest

Acting Director-General of Oil and Gas, Ego Syahrial confirmed that Shell had conducted open data to see the potential development of the Masela Block.

"It's true that Shell is in the process of opening this data. There are 32 candidates who are currently in the process of opening this data," said Ego Syahrial.

the Masela Block

Even the Ministry of Energy and Mineral Resources has approved foreign companies to see the block data. However, the government does not want to disclose the names of 32 companies interested in investing in the Masela Block. One thing is for sure, if Shell does leave, the government insists the Masela Block project will continue.

Besides investors, the Masela project is still hampered by land problems. Maluku Governor Murad Ismail promised to be ready to facilitate the land acquisition. Together with the Tanimbar Islands Regency Government and Southwest Maluku, the land acquisition of the Masela Block will be completed through adat and deliberation processes.

"We will solve the land problem as well as possible since it has been discussed that many people have controlled the land," he said.

Therefore, the Maluku Provincial Government is also waiting for the decision and the readiness of lnpex to acquire some land for LNG development.

"We'll just wait. It is impossible to solve the land problem if there is no encouragement from lnpex," he said.

Dwi Soetjipto added land acquisition will begin if the Environmental Impact Assessment (EIA) has been completed.

Kontan, Page-12, Thursday, August 6, 2020

EIA Completion of the Abadi Abadi LNG Project begins

After being stopped due to the approval of the Covid-19 pandemic, the process of discussing the Impact of the Environmental Impact (EIA) of the Abadi LNG Project, the Masela Block will start again in the second semester. Not only that, some foreign gas buyers who are interested in taking liquefied natural gas (LNG) produced by this project.

Dwi Soetjipto

SKK Migas Head Dwi Soetjipto said that Inpex Corporation and Shell continue to work on the Abadi LNG Project. At present, EIA approval for this project has been approved. Needed, Inpex as an operator will continue to be completed by Amdal so other processes can be carried out, including land acquisition.

"Inpex can conduct a survey in the second semester, especially for rainy season data. Then [the process] gives an EIA, then other things can be processed. This is a condition for the investor in the execution of the land, which is the EIA, okay, "he said.

The Abadi LNG project

Related to land acquisition, the Governor of Maluku. Murad Ismail is committed to facilitating it. The Abadi LNG project is a large project that submitted its development plan which was witnessed directly by President Joko Widodo so that the local government will support this project. In addition, this project is also intended for the people of Maluku.

"Since all land permits above 5 hectares are ours, I will help and discuss with the regents of Tanimbar and Southwest Maluku," he said.

He decided, his party would strive so that there were no challenges in the acquisition of this land. For example, it has previously provided 27 hectares of land on Nustual Island as the port side of the Abadi LNG Project. 

    The decision was stipulated in the Maluku Governor's Decree No. 96 of 2020 on the 14th of February 2020. Therefore, Murad asked the contractor not to doubt the tolerance of the local government regarding the Abadi LNG Project. Even if there is compensation for land acquisition, it will facilitate so that the amount is not excessive.

"We support that everywhere, we choose adat and deliberation. We will be picky about this land, "he said.

However, to complete the execution of land acquisition depends on Inpex.

"Procurement of land depends on Inpex wanting to be finished anytime. We just wait. It is impossible to finish if there is no support from Inpex, "he added.

Based on SKK Migas data, as of last March, the work on the Environmental Analysis (Amdal) of the Abadi Project has only reached 43.41% of the target of 47.27%. In addition, the auction process for the work of Front End Engineering Design / FEED onshore liquefied natural gas / LNG refinery facilities, floating production and loading and unloading facilities (floating production, storage, and unloading / FPSO), gas pipelines, and umbilical underwater facilities, risers, and flowline (SURF) is still ongoing.

Aside from land, Dwi admitted, the Covid-19 pandemic also considered the sale of LNG from the Abadi LNG Project. Because, for the project to reach a Final Investment Decree / FID, amounting to 80% of the total LNG production target of 9.5 million tons per year, there must be a buyer. So far, PT PLN (Persero) has approved the purchase of LNG of 2-3 million tons per year and PT Pupuk Indonesia (Persero) 150 million standard cubic feet per day / MMscfd.

"From abroad, there are Japanese, Chinese, and Taiwanese companies that are interested in buying, we immediately receive support," Dwi said.

It was revealed, his side was still hoping that the Abadi LNG Project FID could be accepted in 2022. Before that, along with LNG marketing, the project design work had to be completed.

"From 2022 to 2027, EPC (engineering, procurement, and construction) can continue," he said.

The Abadi Project launches in the second quarter of 2027. The US $ 19.8 billion replacement project undertaken by Inpex Masela Ltd is projected to produce 150 mmscfd of gas piped and in the form of LNG 9.5 million tons per year.

Investor Daily, Page-10, Wednesday, August 5, 2020

Masela LNG Project Hampered by Land Problems

The Masela Block liquefied natural gas (LNG) refinery project in the Tanimbar Islands, Maluku, faces a winding road. After Royal Dutch Shell will leave the Masela Block, the problem now arises from the unfinished refinery holding.

Referring to the notes of the Special Task Force for Upstream Oil and Gas Activities (SKK Migas) until June 2020, the available land is still partial. Even though this project is targeted to operate or onstream by 2027.

    The problem of the Contribution is potentially more complicated. Because reportedly, the Sinar Mas Group is said to have bought a portion of land in the village of Lermatang, South Tanimbar, Tanimbar Islands, Maluku Province. Its location is in the Weminak River area, the border between Lermatang Village and Bomaki Village.

Even though Maluku Governor Murad Ismail in early June this year submitted the Governor's Decree regarding the determination of the allocation of the Masela liquefied natural gas refinery port on Nustual Island, Lermatang Village, South Tanimbar, to the Head of SKK Migas Dwi Soetjipto. In the Maluku Provincial Government Decree, the allocation is 27 hectares (ha). The land in that location is said to have been bought by the Sinar Mas Group.

"I have got a report. But because the large-scale land acquisition is handled by Jakarta, we submit this problem to Jakarta (SKK Migas). " Rinto Pudyantoro, Chief Representative of SKK Migas Papua Maluku.

But Rinto was reluctant to mention on behalf of what company and what price of land purchased by the Sinar Mas Group. Rinto only stated that, in principle, the Masela Blok LNG refinery project was a state project, so the land was bought and acquired on behalf of the Minister of Finance and became the property of the state. Likewise, private property to be purchased.

Gandi Sulistiyanto

The Managing Director of the Sinar Mas Group, Gandi Sulistiyanto, denied that he had bought or even owned land in the area.

"I have checked with the forestry and mining unit, there is no land in the area. Where's the news from? Which regency and province? "He said.

Acting Head of the SKK Migas Program and Communication Division, Susana Kurniasih, said that the Sinar Mas Group did not coordinate with SKK Migas.

"If it is true that Sinar Mas will be active in Lermatang Village, we hope that the activities will not interfere with the Masela project plan," he said.

    Moreover, the Tanimbar District Head, Maluku Governor and the Minister of Environment and Forestry (LHK) have agreed on the needs of the LNG refinery allocation. Head of SKK Migas. Dwi Soetjipto emphasized that the Masela onshore LNG Plant project should not be disrupted. The Central Government and regional governments have committed to that, "he said.

Inpex Corporation

    Regarding the prospective LNG Plant location, the management of Inpex Corporation stated that it always refers to the Decree of the Maluku Governor. The exact location and area of ​​the Abadi LNG refinery will be finalized after the results of the survey and design study have been studied, "said MN Kurniawan. Act Corporate Communication Manager Inpex Masela.

Kontan, Page-1, Monday, July 27, 2020