Govt seeks advice from world-class consultant on Masela

By Godang Sitompul

Minister of Energy and Mineral Resources Sudirman Said has assigned Head of upstream authority SKK Migas and the directorate general of oil and gas to look for a ?world-class consultant? to review the options whether to build a floating LNG plant or onshore LNG plant for the Massela block in Maluku, according to sources.

?I confirm that the minister has asked SKK Migas to find a consultant,? Head of SKK Migas Amien Sunaryadi said.

A source said SKK Migas has asked Inpex, the operator of Masela, to make a study on the multiplier effect of the project on the national economy if the LNG plant is build offshore.

Inpex and its partner Royal Dutch Shell propose to build a floating LNG plant (FLNG) to process gas from the block in their Plan of Development (PoD). The PoD has been approved by SKK Migas but has yet to be approved by the minister. Controversies however have been sparked after Coordinating Minister of Maritime Affairs made a different proposal recently. Rizal proposed the LNG plant be built onshore in Aru Island, some 600 km from the block, arguing that an offshore LNG plant will bring more multiplier effects to the national economy compared to a floating LNG plant.

Sudirman earlier promised to make a decision by Oct. 10 whether to accept Inpex-Shell?s proposal or Rizal?s proposal. In view the fact that the minister is asking for advice from a consultant, he is most unlikely to make the decision by the deadline.

Editing by Johannes Simbolon