SKK Migas, Japans INPEX Ink Deal on Masela Block Development
Date 17 Juni 2019
The Indonesian Government and Japanese oil and gas giant INPEX have signed Head of Agreement (HoA) for the development of upstream oil and gas field Masela block in the Arafuru Sea, Maluku in eastern Indonesia.
The agreement was signed by Head of the Indonesian Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) Dwi Soetjipto and President Director of Inpex Indonesia Shunichiro Sugaya, witnessed by Minister of Energy and Mineral Resources Ignasius Jonan, Japanese Minister of Economy, Trade and Industry Hiroshige Seko, and President Director of Inpex Corporation Takayuki Ueda in Karuizawa, Japan, Sunday (16/6).
After a lengthy discussion, the signing of the HOA became a crucial point for upstream oil and gas investment in Indonesia with a value worth USD18-20 billion. It has now became Indonesias largest investment in one sector and the biggest Japanese investment in the last 5 decades, said Jonan.
In the meantime, Dwi Soetjipto added that the development in the Masela block is expected to be a good start in developing upstream oil and gas industry in the deep sea of eastern Indonesia.
“The development of the Masela block is projected to attract larger foreign investment, which will bring a positive influence on Foreign Direct Investment in Indonesia. It is also expected to create multiplier effects for supporting and derivative industries in the country to support national economy and hopefully in the future, Indonesias investment climate will be better and more competitive,” Dwi added.
After the signing of the HoA, which covers all the main points in the Plan of Development (POD) revision proposal of Abadi Gas Field of Masela Block, it is expected that the completion of the revised POD could be completed immediately.
The development of Masela Block is expected to contribute additional natural gas production of around 10.5 million tons (mtpa) per year, around 9.5 million tons of LNG per year, and 150 million standard cubic feet per day for pipeline gas.
The project is targeted to be completed in 2027. (Public Relations of Ministry of ESDM / ES)
Translated by: Estu Widyamurti
Edited by: M. Ersan Pamungkas