Oil giants eyeing stake in Inpex? gas block

Japanese oil, gas firm Inpex Corp. had been approached by a number of EP firms over the possibility to farm-in its Masela giant gas block in Timor Sea.

A Petromindo.Com source who declined to be identified said that companies like Royal Dutch/Shell, Total SA, Marathon Oil, StatOil and ConocoPillips had made approach expressing their interest to farm-in the block, where an LNG plant is planned to be developed.

The source, however, said that it?s too early to tell which of the companies Inpex would favor.

The source said Inpex is scheduled to submit Plan of Development to the block in May followed by reserves certification this year. The source estimated that Front- End Engineering design would be completed in 3 years, followed by EPC 3 years after, which may bring the LNG plant to start production in 2014-15.

Inpex may have to build a floating LNG plant in the block, as the nearest Indonesian land in 800 kilometers away and the idea to pipe the gas to LNG plant in Darwin, Australia, 400 kilometers away would likely be turned by Indonesian government.

Inpex has 100 percent interest in the block.

State oil and gas company Pertamina has expressed interest to acquire 10 percent interset in Masela under the Indonesian Participation rule which allows Indonesian firm to acquire up to 10 percent interest in one block after first PoD is approved. (godang)