Govt to Help Inpex Find Investors for Masela Block

Summary

The Abadi LNG project stagnates following the decision of Shell Upstream Overseas Services Ltd to abandon the project in July 2020. It is expected to be on stream in 2027, but Shell's divestment process of its 35 percent participating interest (PI) in the Masela Block has not been fruitful. Therefore, the Indonesian government intends to help Inpex, Masela Block's operator, find new partners. "The Energy Ministry and SKK Migas are trying to be more active in offering potential work areas," Upstream Oil and Gas Special Regulatory Task Force's (SKK Migas) head Dwi Soetjipto said last Monday.

Dwi elaborated that Shell's business policy change prompted the withdrawal as the company started to focus on developing carbon-free energy. While waiting for Shell's replacement, Inpex is taking care of the land acquisition and the Environmental Impact Analysis (Amdal) permit processes. "The main problem is how to immediately find Shell's replacement for the Abadi Masela project. When one party is non-existent, the progress is hampered," he said.

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