Inpex seeks for extension of Masela block contract

By Godang Sitompul

Japan?s oil and gas firm Inpex Corp, the operator of the gas-rich Masela block in the Arafura Sea, is seeking for an extension of its contract over the block which will expire in 2028.

Rudi Rubiandini, Chairman of upstream authority SKK Migas, told reporters Monday that his office has proposed to President Susilo Bambang Yudhoyono for an extension of the Inpex contract for another 20 years. ?We have proposed verbally to the President ? that an automatic extension of 20 years can be given,? he told reporters.

As previously reported by this portal, Inpex will commence delineation drilling campaign at the Masela giant gas block in June this year, to be followed by drilling of one exploration well.

Inpex has discovered a huge amount of gas in the block and is planning to develop floating LNG production facility. The Masela block is expected to produce 2.5 million tons of LNG per year and 8,400 barrels of condensate per day, starting 2018 or 2019.

Inpex expected FEED for the Masela FLNG will be completed mid-2014 with construction to start in 2015.

Editing by Reiner Simanjuntak