Abadi field commercial production may be delayed to 2018

Japan?s Inpex Corporation which is the operator of the major Abadi gas field within Masela Block has informed the government that it may delay the commercial operation of the Abadi field to 2018 from initial plan of 2016.

Upstream oil and gas regulator Deputy Chairman for Operation, Rudi Rubiandini, said the government wants the project to commence production in 2016, however Inpex said there is possibility of delay to the commercial operation date of the gas field.

?Our projection is that the construction will start at end 2013. Assuming construction (of facilities) will take about three years, it (production) should start in 2016. However, Inpex offers us to start in 2018,? said Rudi Rubiandini.

He noted the government still wants the project to commence production in 2016 as planned initially.

Currently, Inpex is conducting front-end engineering and design (FEED) tender for the Abadi field. Tens of companies were reportedly taking part in the tender. The operator has yet to announce the winner. Inpex has also said it expects the FEED works to start in around April next year.

Inpex holds 60 percent interest in the Masela Block after transferring 30 percent interest to Shell in July. The finalization of the transfer of the interest is pending the approval of the Indonesian government. The remaining 10 percent working interest is owned by listed PT Energi Mega Persada Tbk.

Rudi Rubiandi also said the government is seeking to allocate portion of the Abadi field gas for floating storage regasification units (FSRUs) which are being developed. The first FSRU is to be located in Jakarta bay, West Java, which is scheduled to commence operation in April next year. The two other FSRUs are to be located in Belawan, North Sumatera and in Central Java.

He said BPMIGAS and Inpex are working together to market the gas from Abadi field. (godang)