INPEX, Shell finalizes transfer of interest in Masela
Friday, June 28 2013 - 01:46 AM WIB
Japan?s oil and gas firm INPEX Corporation said on Thursday that its affiliate INPEX Masela, Ltd. and Shell Upstream Overseas Services (I) Limited, a subsidiary of Royal Dutch Shell plc, have completed the necessary procedures for the transfer of PT EMP Energi Indonesia (EMPI)'s 10 percent participating interest in the Masela Block, Arafura Sea (Abadi LNG Project).
This acquisition takes place following EMPI's decision to divest its participating interest in the Abadi LNG Project. Based on the agreement, INPEX will continue to act as the operator and retain a 65 percent participating interest while Shell will hold a 35 percent participating interest.
INPEX continues to seek support from the Indonesian government and other stakeholders for a successful commercial production from the Abadi LNG Project.
The Abadi gas field was discovered in 2000, and the subsequent six appraisal wells and the reservoir study results confirmed sufficient gas reserves for LNG development. In December 2010, the plan of development (POD) was approved by the Indonesian government that the Abadi gas field would be developed in phases and that a Floating LNG (FLNG) plant would be constructed and utilized for an annual production of 2.5 million tons for the first phase development.
INPEX is now conducting Front End Engineering and Design (FEED) work to ensure successful start-up of the Abadi LNG Project while pursuing future subsequent development utilizing the gas reserves.
Editing by Benget Besalicto Tnb.