Indonesia, Inpex Agree Upon Masela Block Development
Date 27 Mei 2019
The Indonesian Government and Japanese Oil Company Inpex have reached an around-USD20-billion-agreement in the development of the giant gas field of Masela Block in the Arafuru Sea, Maluku.
“Both parties have achieved a win-win solution through a revenue-sharing scheme, where the Government would receive at least 50%,” Minister of Energy and Mineral Resources Ignasius Jonan said after a meeting with CEO of Inpex Corporation Takayuki Ueda in Tokyo, Japan, Monday (27/5).
The historic final agreement was marked by the signing of the Minute of Meeting by Head of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) Dwi Soetjipto and CEO of Inpex Corporation Takayuki Ueda, witnessed by the Minister.
“Inpex and SKK Migas have finally agreed on the main points of the development of the Masela Block this afternoon in Tokyo. The negotiation has been going on for 18 years. The investment value is between 18-20 billion US dollars with fair distribution for Indonesia and contractors. I was touched,” Jonan said.
The signing of the agreement between the Government and Inpex, he added, is planned to be held at the G20 countries meeting in Japan, in the near future.
The development is expected to have a positive impact on improving the national investment climate and the development of the eastern region of Indonesia.
This meeting is a follow-up meeting of Jonan’s meeting with Ueda on 16 May in Tokyo. At the previous meeting, the Masela Block’s Final Plan of Development (PoD) framework was agreed upon. Today’s meeting discussed the detailed negotiations of the framework, so that the agreement between the Indonesian Government and the Japanese Inpex Corporation could be signed immediately. (Ministry of Energy and Mineral Resources PR /ES)
Translated by : Fairuzzamani Inayatillah
Edited by : Ridwan Ibadurrohman, Yuyu Mulyani