Transfer of participation rights and cooperation with INPEX

The government will seek to annex 20% of participating rights, with Petronas at 15%. Later, it will collaborate with the majority shareholder and operator of the Masela Block, INPEX Corporation.

Established in 2001, the International Petroleum Exploration (INPEX) Corporation is an energy sector company from Japan whose shareholders are controlled by the Japanese government under the Ministry of Economy, Trade and Industry of Japan with 21.19% of the shares.

The takeover of the Masela Block which has gas reserves of 4 trillion cubic feet (TCF) by Pertamina and Petronas will open up the possibility of developing the Block. The agreement between Pertamina and Petronas will be signed in mid-July 2023.

Opportunities for the development of the Masela Block are getting stronger as Inpex Corporation's exploration results found 10 new potential wells.

The agreement to form a consortium with Petronas is an effective way to reduce risk and high funding so that it can accelerate the development of the Masela Block.

This SPA contains a number of agreements that must be carried out by the seller and buyer of assets, which will be contained in several articles.

Dwi Soetjipto, Head of SKK Migas stated that an agreement had been reached on the valuation issue, while an agreement had also been reached on the amount to be paid, and the Block is planned to produce LNG in 2029.

Plans to increase participation rights

Soetjipto said that Pertamina will later take on a larger portion of the 35% ownership rights in the consortium.

"Their plan is 20%, and 15% Petronas. Pertamina certainly has to have more. But this still depends on the final decision," said Soetjipto, on July 3, 2023.