Pertamina Still Discussing Plan to Take Over Shell's Abadi LNG Stake

Fransiska Nangoy and Bernadette Christina Munthe
Tuesday, January 17, 2023

Indonesian state energy firm Pertamina is still discussing its plans to participate in the Abadi liquefied natural gas (LNG) project with the country's upstream oil and gas regulator, officials said on Tuesday.

 Indonesia has been seeking an investor for years to take over a 35% stake in the project also known as the Masela gas project, after the company signaled its intention to withdraw. Pertamina has expressed an interest to join. 

S&P Global Platts reported on Monday that Pertamina will take over Shell's stake in the project, citing the energy minister. 

However, the chairman of upstream oil and gas regulator SKK Migas, Dwi Soetjipto, told Reuters on Tuesday that the plans were still being worked out for Pertamina to take over Shell's position. "Still under discussion. We shall wait," he said, without providing further details about the talks. That was backed by a comment from Pertamina's upstream unit spokesman Arya Dwi Paramita, who said, "Still being discussed."

Japanese energy company Inpex, which controls 65% of the project, said the issue with the partners and carbon capture and storage details needed to be sorted out before they can finalize a revised development plan for the project. 

The Abadi project is designed to produce 9.5 million tonnes of LNG per year and is expected to start operations in 2027, according to its development plan approved in 2019. But the project may be delayed by two years, authorities have said. 

The project had been expected to cost around $20 billion and has faced years of delays after various changes in planning, including to accommodate the government's request to move the project onshore. 

SKK Migas previously said Inpex would submit a revised plan of development to include a carbon capture and utilization and storage (CCUS) facility in the project, which is estimated to cost another $1.4 billion, and recalculate the project's value because of rising gas prices. 

(Reuters - Reporting by Fransiska Nangoy and Bernadette Christina Munthe; Editing by Christian Schmollinger)


Categories: Energy LNG Industry News Activity Production Asia

Related Stories

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Woodside Agrees Long-Term LNG Supply with Petronas Unit

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

Fugro Lands Deepwater Gas Field Job in Southeast Asia

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

CNOOC Puts Into Production New Oil Field in South China Sea

Woodside Inks Long-Term LNG Supply Deal with China Resources

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

Current News

Santos and QatarEnergy Agree Mid-Term LNG Supply

PTTEP Hires Energy Drilling’s Rig for Southeast Asia Offshore Job

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com