Inpex to complete Masela Pre-FEED in two phases

Inpex Corp, operator of the Masela block in Maluku, has reached an agreement with the Ministry of Energy and Mineral Resources to complete the required preliminary front end engineering design (Pre-FEED) for the planned Abadi gas development project located in the block in two phases.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar said in a statement issued Friday following a meeting with Inpex officials that there will be certain criteria that must first be met by Inpex before moving to the second phase. No further details were provided.

Minister of Energy and Mineral Resources Ignasius Jonan said earlier this month he is losing patience with Inpex as the company has yet to complete the required Pre-FEED for the development of onshore LNG plant to process gas from the Abadi field.

As has been previously reported, the minister has demanded Inpex to quickly start making Pre-FEED documents for two onshore LNG plant scenarios in two locations. The first is an LNG plant with capacity of 7.5 million tons per annum plus pipeline gas of 474 mmscfd, and the second with capacity of 9.5 mtpa plus pipeline gas of 150 mmscfd. There are also two alternative locations for the project: Aru Island or Yamdena Island, in Maluku Province.

Jonan explained that with the Pre-FEED document completed, the government will be able to among others decide allocation of gas from the project, the capacity of the LNG plant, and its location. The document will also be used as basis for the investors in developing the project.

President Joko Widodo decided in March for Inpex to develop onshore LNG facility at the Masela block project in Maluku, despite an earlier proposal from the company and partner Shell to build an offshore facility. Inpex has demanded a number of incentives for the government to make the onshore project commercially feasible including increasing the LNG production facility to 9.5 mtpa.

Editing by Reiner Simanjuntak