SKSP Migas negotiating price of FEED for Masela FLNG project

By Godang Sitompul

 

SKSP Migas, the caretaker upstream oil and gas regulator, is currently negotiating the price of the front-end engineering design (FEED) for the planned floating LNG (FLNG) facility in the gas-rich Masela block, which is operated by Japan?s oil and gas giant Inpex Corp.

 

SKSP Migas Deputy for Operational Control, Gde Pradnyana told Petromindo.com Friday that an agreement on the price is expected to be reached in 2013.

 

?The budget for the FEED of the Masela (FLNG project) is smaller than that proposed by the contractors. So we?re trying to negotiate it first,? he said.

 

He said that there are two consortiums involved in the negotiation process. ?Hopefully, there will be result in the early part of 2013 so that we don?t have to repeat the tender,? Gde said.

 

Inpex is planning to build a floating LNG plant in the Masela block, in Maluku, with initial capacity of 2.5 mtpa.

 

Editing by Reiner Simanjuntak