Abadi project to come onstream in 2024
Tuesday, May 26 2015 - 01:31 AM WIB
The Abadi project in Masela block offshore Maluku is scheduled to come onstream in 2024 or 2025, according to upstream authority SKK Migas.
?As for the current status of the project, the FEED (front end engineering and design) of the project?s FLNG (floating liquefied natural gas) facility with a capacity of 2.5 mtpa has been completed. However, because there is a new development and a new huge gas reserve discovery, Inpex plans to triple the capacity of its FLNG plant to 7.5 mtpa,? Head of Gas Commerce Division at SKK Migas Arief Riyanto told Petromindo.com.
Therefore, Japanese firm Inpex Corp., the operator of the Masela block, has recalculated the costs of the project and reschedule its development, according to Arief.
Inpex has submitted a revision of its plan of development (POD) for the Masela project to SKK Migas, he said.
"In 2024-2025, the project is expected to be onstream. Hopefully the project will not be postponed again," he said.
The Masela block is 65 percent owned by Inpex, while the remaining 35 percent is held by Shell Upstream Overseas Services (I) Limited, a subsidiary of Royal Dutch Shell plc. Both firms plan to develop a floating LNG plant which would be the largest in the world, to process gas from Abadi field of Masela.
The company has also requested for an extension of the current contract which expires in 2028, for another 20 years as the company aims to make huge investment in developing the Abadi gas field in the block. Existing regulation rules, however, that such request can only be made no earlier than 10 years before the contract expires. The authority has previously said that it may entertain the contract extension request if Inpex has signed gas sales agreements.
Editing by Johannes Simbolon