BPMIGAS wants gas from Abadi field to supply West Java
Thursday, January 26 2012 - 01:45 AM WIB
Upstream authority BPMIGAS is hopeful that the giant Abadi gas field within the Masela Block in the Arafura Sea operated by Inpex Corporation of Japan will be able to meet the gas demand of industrial sector in the West Java area and state electricity company PT PLN.
?As for Masela gas, we have to see gas balance. The area (eastern Indonesia) will be in excess of gas. Therefore, gas from Masela will be delivered to West Java area which is in shortage of gas supply,? expert staff of BPMIGAS Fator Rahman told Petromindo.com.
Inpex Masela is currently preparing to award Front-End Engineering and Design (FEED) contracts, which is scheduled for the 1st half of 2012. No off-takers have been secured yet, pending final investment decision (FID) of the project. FID will be announced after the FEED is decided.
A senior executive of BPMIGAS told Petromindo.com last week that Inpex has indicated that it will commence production of the Abadi field in 2018, delayed from early plan of 2016. The Energy and Mineral Resources Ministry however maintains its target for Abadi maiden production of 2016.
"BPMIGAS has its own internal target of 2017 for Abadi field maiden production," the executive said.
Last month, Inpex has completed the necessary procedures for the transfer of a 30-percent participating interest in the Masela Block in the Arafura Sea (Abadi project) to Shell Upstream Overseas Service Ltd (Shell).
As a result of the transfer, Inpex Masela?s interest in the Abadi field project, located within the Masela block, reduced to 60 percent, Shell holding 30 percent and PT EMP Energi Indonesia, a subsidiary of PT Energy Mega Persada Tbk (EMP), owns 10 percent.
The Masela block measures 3,221 km2 in a water depth ranging from 300 meters to 1,000 meters. The Abadi gas field was discovered in 2000, and the subsequent six appraisal wells and the study results confirmed the sufficient gas reserves for LNG development.
In December 2010, the plan of development was approved by the Indonesian government that the Abadi gas field will be developed in phases. The government also approved that a Floating LNG (FLNG) plant will be constructed and utilized with an annual production of 2.5 million tonnes for the first phase development.
Editing by Roffie Kurniawan