Inpex starts Masela farm out talks

Japanese oil, gas giant PT Inpex Corp. is in talks with several oil, gas majors to farm out part of its interest in Masela LNG project in Timor Sea.

An industry source told Petromindo.Com that the company is holding talks with oil majors such as Total SA, BP and ConocoPhillips.

?Talk with Total is very intensive,? the source said. Total and Inpex share 50: 50 interest the giant Mahakam block in East Kalimantan.

Inpex is known to plan to farm out part of its 90 percent interest in the project, but will retain the Masela block?s operatorship.

Government has approved Inpex? plan to develop multi trillion cubic feet gas reserves at Abadi field in Masela using floating LNG facilities with initial capacity of 2.5 MTPA.

According to the source, Maluku provincial government is also interested to acquire 10 percent stake at Masela under the Indonesian participation scheme which gives right to Indonesian company appointed by the government to acquire 10 percent right at any block after the first plan of development is approved.

Inpex Indonesia Spokesperson Nico Muhyidin declined to comment on the matter. (godang)