Inpex’s Masela LNG deal extended by 27 years
Indonesia has reached a series of agreements with Japan’s Inpex regarding the development of the Masela block that contains the Abadi gas field.
During the visit of Indonesia’s minister of energy and mineral resources Ignasius Jonan, to Japan, three decisions were made following talks with Inpex Corporations’ CEO Toshiaki Kitamura.
The first decision was to stick with the development of a land-based LNG project, with Indonesia’s government granting a 20-year extension to Inpex contract in addition to a seven-year compensation due to the change from a floating LNG facility to a land-based project.
In addition to the two decisions, the Indonesian government has granted Inpex the right to chose the location of the landfill, the ministry said in a statement on Thursday.
Currently, Inpex is conducting a pre-FEED study for the project that would have a production capacity of 9.5 million tons of LNG per year.
Inpex holds 65 percent operating interest in the Masela block where the Abadi gas field is located, while Shell holds the remaining 35 percent.