Minister: Consultant to complete review of Masela block in two months

Minister of Energy and Mineral Resources Sudirman Said stated that the independent consultant assigned to review the options of production facility for the Masela block, in Maluku Province, whether floating LNG plant or onshore LNG plant, must complete the work in two months.

As such, the government would be able to make a decision before the end of this year, said Sudirman in a statement issued Thursday.

As has been earlier reported by this portal, the minister has asked the upstream oil and gas regulator SKK Migas to look for a ?world class consultant? to review the options of production facility for the Abadi field in the Masela block.

The decision to get the opinion of an independent consultant has consequently delayed the government?s decision on the plan of development (POD) for the Abadi field proposed by Masela operator Inpex Corp, initially expected to be made on October 10.

Under the revised POD, Inpex and Royal Dutch Shel proposed the development of a floating LNG plant with a capacity of 7.5 million tons per annum to process gas from the Abadi field.

The planned floating LNG plant, however, has recently gained criticism particularly from Coordinating Minister for Maritime Affairs Rizal Ramli, who suggested for an onshore LNG plant, which then led Sudirman to seek for the opinion of an independent consultant.

Editing by Reiner Simanjuntak