OIL AND GAS-JAKARTA. The government has approved the revision of the Masela Block development plan last November. Following this, SKK Migas will push Inpex and other consortium members to expedite the entire process so that it can be on stream by 2029.
Head of SKK Migas, Dwi Soetjipto said that on November 28, 2023, his party had approved the second revision of the development plan or plan of development (PoD) of the Masela Block.
“The development of the Masela Block requires an investment of around US$ 19.8 billion, this estimate is added with carbon capture (CCS) facilities. The second revision of PoD 1 has been approved and the target on stream is the end of 2029,” he said in a Hearing Meeting (RDP) with the VII Commission of the Indonesian House of Representatives, Thursday (30/11).
Dwi further explained, the production overview from the Masela Block is still the same as before. The gas field will produce 9.5 million tons of LNG per year, 150 million cubic feet of gas per day (MMSCFD) for pipeline gas to be channeled to the petrochemical or fertilizer industry in the surrounding area. Then 35,000 barrels of condensate per day.
The Masela Block is developed by a consortium operated by Inpex which holds a participation interest (PI) of 65%, then Pertamina holds 20% PI, and Petronas 15% PI.
Currently, Dwi continued, his party is pushing Inpex and consortium members to expedite all ongoing processes so that the 2029 production target can be achieved.
The same thing was previously stated by the Minister of Energy and Mineral Resources, Arifin Tasrif who wants the Masela Block to be produced immediately.
“The production results of the Masela Block will be largely supplied for domestic needs in order to maintain energy resilience in Indonesia in the energy transition era,” he said recently.
Quoting Kontan.co.id's notes, the concept of developing a green field alias a new oil and gas field that has high complexity and high risk. Includes deepwater drilling, subsea facilities, Floating Production Storage and Offloading (FPSO), and onshore LNG plant.
This will be a challenge as well as a great opportunity for Pertamina Hulu Energi and its partners to realize it. In addition, the development of this field also has the potential to absorb up to 10,000 workers.
The Masela Block is also planned to produce clean LNG through the application of Carbon Capture and Storage (CCS) technology to support the Government's program in reducing carbon emissions and supporting sustainability in the energy transition era.