Jakarta: Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed that PT Pertamina and an oil and gas company from Malaysia, Petroliam Nasional Berhad or known as Petronas, will soon acquire participating interest (PI) in 35 percent of the Masela Block from the hands of Shell.
Pertamina's negotiations with Shell are said to have almost reached an agreement. The state-owned company is estimated to have to spend at least USD 1.4 billion or around IDR 20 trillion (exchange rate of IDR 14,835) to take the 35 percent stake.
"Thank God, Masela has found a meeting point, there is a way out. Shell wants to release its shares to Pertamina, and possibly Petronas as well. It will be executed at the end of this month," said Arifin in a working meeting with Commission VII reported by Media Indonesia, Wednesday, June 14, 2023.
Pertamina and Petronas together with an oil and gas company from Japan, Inpex Masela Ltd. will manage a liquefied natural gas (LNG) refinery project located in the Tanimbar Islands district, Maluku with an investment value of USD 19.8 billion or around IDR 294 trillion.
"We want to ensure that this project can be supported by parties who have adequate competence. For this reason, we are looking at the possibility of participation from other parties who do have the competence to be able to support this project," he said.
The production capacity of the Masela Block is estimated to be around the equivalent of 10.5 million tons per annum/mtpa, or 9.5 million tons for LNG per year and piped gas of 150 million cubic feet per day (mmscfd).
The government, continued Arifin, has given approval for the development plan (Plan of Development/PoD) for the Masela Block to Inpex from 2027-2055.
From that period, natural gas production will produce 16.38 trillion standard cubic feet (TSCF). (Kevin Schreiber)
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