The Project Investment in the Masela Block Reaches IDR 324 trillion

OIL AND GAS-JAKARTA.  The Kick-Off of the Project Management Team (PMT) for the Abadi LNG Project in the Masela Block took place on Thursday (28/12). This follows the approval of the revised Plan of Development (POD) for the Masela Block.

The Head of SKK Migas, Dwi Soetjipto, in his speech mentioned the Kick Off of the Abadi Masela Project Management Team, marking the start of a massive National Strategic Project. 

“The investment for the Abadi Masela project is very large, reaching US$ 20.9 billion, and if compared, it would be equivalent to IDR 324 Trillion or almost three times the investment value of the Jakarta-Bandung high-speed train”, explained Dwi in a written statement (28/12).

The revised POD for the Masela Block includes a carbon capture storage (CCS) component. With this component, the Masela Project becomes the first project with a cost calculation related to CCS that has met the requirements in its cost recovery scheme.

Dwi said, this project will generate government revenue of US$37.8 Billion or equivalent to IDR 586 Trillion. If it can be accelerated, the Abadi Masela project, Dwi continued, even has the potential to accelerate revenue from this project, reaching around US$ 5 billion, on the other hand, if there is a delay, it will potentially increase the project cost by about US$ 1 billion each year, excluding additional labor costs.

“Today's kick-off is an important milestone, and I ask the SKK Migas team and Inpex Masela to continue looking for potential activities to accelerate the project. If the Abadi Masela project can be completed faster, the impact will be very large in terms of accelerating state revenue and additional gas supply to support domestic needs”, he said.

Furthermore, Dwi also said that the Abadi Masela Project is proof of Indonesia's commitment to increasing production while reducing emissions. 

“Because the Abadi gas field also has the potential for CO2 storage and even becomes a CCS Hub with a CO2 injection capacity of 71-80 Million Tons and a Storage Capacity of 1.2 Gigatons,” said Dwi.

Managing Executive Officer, Senior Vice President, Asia Projects, INPEX, Akihiro Watanabe, said that INPEX and its partners will continue operations including several activities on site and prepare for FEED work. 

“After that, the joint venture company (INPEX, Pertamina, and Petronas) will carry out the project with the aim of reaching the final investment decision / Final Investment Decision (FID) and start production in the early stages after completing the necessary preparations including marketing and financing activities,” added Watanabe.