Japan’s exploration and production giant Inpex is set to start pre-FEED work for the Abadi liquefied natural gas (LNG) project in Indonesia.
Inpex said it will formulate a detailed revised plan of development contingent on the results of the pre-FEED work based on an onshore LNG development scheme with an annual production capacity of 9.5 million tons.
Following government approval of the revised POD, a series of subsequent evaluations including front-end engineering and design (FEED) work will be carried out leading to a final investment decision (FID).
In September 2015 Inpex submitted a revised POD envisioning a larger 7.5 million tons per annum LNG processing capacity of a floating LNG (FLNG) to the Indonesian government authorities.
In April 2016, the authorities responded by instructing the company to re-propose the POD for the Abadi LNG project based on an onshore LNG development scheme.
Last October, Indonesian government extended Inpex’s production sharing contract for the Masela block in the Arafura Sea that contains the Abadi gas field.
Inpex holds 65 percent operating interest in the Masela block where the Abadi gas field is located, while Shell holds the remaining 35 percent.