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Minister discusses development of Masela Block

Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan discussed That the Growth of Masela Block after Finishing a Workforce visit to Japan from Monday to Wednesday. Some of the important outcomes is the continuing development of this Masela Block, That Is the outcome of a discussion with Inpex Corp CEO Toshiaki Kitamura at Tokyo, Japan, Tuesday. Based on statistics from the ESDM Ministry received by us at Jakarta on Thursday, the debate led in three conclusions being made, the first being the government still requests Inpex to build up a liquefied natural gas (LNG) facility on property in accordance with President Joko Widodos instructions.

Secondly, the government will expand Inpexs contract for 20 years and add seven more years as compensation for changing the refinery improvement strategy from floating to land-based. Thirdly, the government offers Inpex the flexibility to pick the site for the LNG refinery. The authorities decision will give a 20-year extension to Inpex, because their arrangement is all but over. It has been granted an extra seven years as reimbursement for the change in the flying refinery expansion strategy to on shore, Jonan noted. On receipt of an operating letter from the Upstream Oil and Gas Regulator (SKK Migas), Inpex is presently conducting a pre front-end engineering design (pre-FEED). Following a ESDM ministers trip to Japan on May 16, 2017, it's been agreed that pre-FEED will be conducted using an option of production capacity and a island.


As for the merit, the LNG refinery capacity was put at 9.5 million tons yearly, and also the production of petrol was set at 150 million standard cubic feet every day. Pre-FEED will soon be a crucial step in devising a revised field development plan (PoD). As is known, earlier PoD revisions were made to increase the LNG production capacity while still employing a floating refinery scheme.

The Masela Block performance agreement was signed in 1998 from Inpex, as the operator, with a 65 percent ownership and Shell Upstream Overseas Servicesalong with a 35 percent stake. The Indonesian government is optimistic which Inpex will begin the gas field project instantly.