Govt establishes focus group to discuss Masela

By Bernard Loebs

The government has decided to establish a focus group to further discuss the best alternative for the development of Abadi gas field within Masela block in Maluku as governmental officials apparently remain divided over the issue.

Minister of Energy and Mineral Resources Sudirman Said the focus group comprises people from the Directorate General of Oil and Gas, SKK Migas, Maluku?s Patimura University, LAPI ITB (the consultancy firm owned by Bandung Institute of Technology) and LPEM UI (a think tank owned by the University of Indonesia).

The focus group will provide more inputs for President Joko Widodo to make a final decision on the development method of the Abadi gas project.

?If the result of study by the focus group says an onshore development of the project will be more beneficial to the public, we shall develop it onshore and vice versa. The most important thing for us is how the project will bring benefit for the development of regional economy,? Sudirman said.

Sudirman said the President has said there should be no decision taken on the project until after there are details on how the project will bring benefits for regional development.

Governmental officials remain divided over the best option for the development of the Abadi gas project with one group comprising among others Sudirman and SKK Migas supporting the floating LNG option proposed by the contractors of the block ? Inpex and Shell ? and another group comprising among others Coordinating Minister of Politics, Law and Security Luhut Panjaitan and Coordinating Minister of Maritime Affairs Rizal Ramli favoring the development of LNG plant onshore.

Editing by Johannes Simbolon