Inpex completes transfer of 30% interest in Masela block to Shell
Thursday, December 8 2011 - 02:20 PM WIB
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.
Inpex will become the operator of the Abadi field gas project.
?Upon completion of the transfer, ordinary income and income before income taxes and minority interests of Inpex?s consolidated financial results for the year ending March 31, 2012, is expected to increase by approximately 68.0 billion yen,? Inpex said.
Inpex said it continues to seek support from the Indonesian government and other stakeholders for a successful commercial production from the Abadi project.
In July, Inpex Corp agreed to transfer 30 percent interest in Masela PSC Block, where a floating LNG plant will be developed, to Shell. The finalization of the agreement was pending the government's approval.
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.
Inpex Masela is currently preparing to award Front-End Engineering and Design (FEED) contracts, which is scheduled for the 1st half of 2012. (romel/roffie)