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OIL AND GAS - JAKARTA. Energy and Mineral Resources Minister Ignasius Jonan has said Japan’s oil company Inpex Corp and the Upstream Oil and Gas Regulatory Task Force (SKK Migas) has agreed on the plan of development (PoD) of the gas-rich Masela Block in the Arafura Sea on Monday in Tokyo.
“Inpex and SKK Migas have agreed on the substantial matters of the Masela Block's development this afternoon in Tokyo. The discussion has been taking place for 18 years,” Jonan said in a statement received on Monday.
“The investment is between US$18 billion and $20 billion with a fair share between the government and the contractor.”
The agreement was concluded when Jonan met Inpex Corp. CEO Takayuki Ueda in Tokyo on Monday. It was the second meeting after they met on May 16 also in Tokyo.
During the May 16 meeting, both parties agreed on the final structure of the PoD. On Monday they discussed the details of the plan.
According to the press statement, both parties agreed to have a win-win solution with a production sharing scheme, where the government will get at least 50 percent of shares.
The agreement was marked by the signing of the meeting minutes between SKK Migas chairman Dwi Soetjipto and Takayuki of Inpex Corp.
“The final signing of the agreement between the government and Inpex Corp will be conducted during the G20 Summit in Japan soon,” Jonan said. The 2019 G20 Summit will be held on June 28 and 29 in Osaka.
The cost of the agreed project development with an onshore LNG plant is around $6 to $7 per barrel of oil equivalent (boe), 20 percent lower than the previous offshore LNG plant at $8 to $9 per boe, according to an SKK Migas statement.
