Independent consultant asked to complete assessment for Abadi project within 45 days

By Febry silaban

Poten & Partners Inc which has been appointed by the Ministry of Energy and Mineral Resources as an independent consultant to assess the feasibility of the Abadi gas field project in Masela block, Maluku, is given 45 days to complete the assessment, according to a senior official at the ministry.

"The cost for the independent consultant is amounted to approximately Rp 3.8 billion, which will be paid for by SKK Migas (upstream authority). The work will be done in 45 days," said Director for Upstream Management at the Directorate General of Oil and Gas Djoko Siswanto, without saying when the assessment will begin.

Djoko said earlier that SKK Migas is drafting the work contract and the parties are expected sign it as soon as possible.

The government has decided to get the help of an independent international consultant following disagreement among officials on whether to use floating LNG facility or onshore facility in developing the Masela block.

Inpex Corp, the operator of Masela block, has proposed for the use of 7.5 million tons per annum capacity floating LNG facility to develop the Abadi field in its plan of development (POD), which has also been approved by SKK Migas.

But when the Minister of Energy and Mineral Resources Sudirman Said was about to approve the PoD, Coordinating Minister for Maritime Affairs, Rizal Ramli, who also oversees the energy ministry, suggested that onshore LNG facility would be the best technology option for the Masela block development.

Editing by Johannes Simbolon