Abadi gas field has obtained PoD approval

OIl and gas upstream sector regulator BPMIGAS has approved of the Plan of Development (PoD) for the Abadi gas field in Masela block, Arafura Sea, Maluku owned by Japan's INPEX Corporation and Indonesian firm PT Energi Mega Persada (EMP)

Following BPMIGAS? approval, INPEX and EMP will make a mutual cooperation to contribute to smooth implementation of the development of the Abadi gas field, EMP said in a statement.

EMP CEO Imam Agustino said, ?This approval will allow EMP and INPEX to work together to monetize the project in a way beneficial to all parties concerned. The POD envisions the adoption of the Floating LNG (FLNG) (liquefied natural gas) for an optimal method for the commercial development. During the first phase of the development, one FLNG plant will be constructed and utilized for the safe and stable LNG production operations."

The floating LNG plant has been studied and proposed by INPEX Masela and supported by BPMIGAS, EMP said, adding INPEX Masela and EMP will proceed to the FEED (Front End Engineering and Design) in a timely manner.

The project is undertaken by INPEX Masela, Ltd., a subsidiary of INPEX, as the operator and PT EMP Energi Indonesia, a subsidiary of EMP.

Last month, EMP completed the acquisition of an 10 percent stake in the Masela PSC, cutting INPEX's stake to 90 percent.

The Masela block covers a total area of 3,221 km2 with water depth of 300 to 1,000 m.

INPEX discovered gas when it driiled the Abadi-1 well in 2000 Subsequent appraisal works, including the drilling of six appraisal wells, confirmed sufficient gas reserves for an LNG development project. (godang)