The Upstream Oil and Gas Regulatory Task Force (SKK Migas) is pushing for the acceleration of gas commercialization from the Abadi Masela Block project worked on by Japanese Oil and Gas Explorer, Inpex Masela Ltd. 

It is targeted that the signing of the Head of Agreement (HoA) for gas sales for domestic needs can be carried out at the Indonesia Petroleum Association (IPA) Conference held in May 2025.

Head of SKK Migas, Djoko Siswanto, revealed that Masela gas will be prioritized to meet domestic needs, including for State power utility PT PLN, State fertilizer company PT Pupuk Indonesia, and State-owned gas distributor PT Perusahaan Gas Negara, a gas subholding of State energy company PT Pertamina.

"For commercialization, Inpex plans to market its gas in June. Hopefully, the HoA for the domestic market can be signed at the IPA event next month," Djoko spoke to the media on the sidelines of the Initiation of Onshore LNG Front-End Engineering Design (FEED) ceremony for the Abadi LNG project, Masela Block, at Fairmont Hotel inJakarta, on Wednesday, April 9, 2025.

Djoko said that SKK Migas is still negotiating with Inpex regarding the volume of gas that will be stated in the gas sales and purchase agreement (PJBG). Of Inpex's current total production of 1,200 million cubic feet per day (mmscfd), around 200 mmscfd will be allocated first for domestic needs.

"Yes, at least, more or less 200 mmscfd can be used for domestic purposes for now," he cited.

Djoko also revealed that the final investment decision (FID) for the Masela project is targeted for completion in mid-2026. "Add six months from now, hopefully FID can be achieved in mid-next year," he said.

On the same occasion, Inpex Masela inaugurated the completion of the Front-End Engineering Design (FEED) for the Abadi LNG project, Masela Block.

CEO of Inpex Corporation, Takayuki Ueda, welcomed this progress which he considered as an important point in the continuation of the project.

"This initiation is also important to achieve high expectations from our services and ensure the realization of this project is perfect," he said in his remarks.

The Abadi Masela LNG Project is one of the National Strategic Projects (PSN) in the oil and gas sector, which is a government priority but has not yet entered the production stage. The government hopes that this project will become a new pillar of national energy security, as well as open up opportunities for further investment in eastern Indonesia.