Tuesday, April 16, 2024

Securing continuity of Masela Block, Inpex pursues long-term LNG sales contracts

Reading Time: 2 minutes
Audina Nur




The Japanese oil giant, Inpex Corporation, is currently seeking long-term gas buyers for the Abadi LNG project in the Masela Block.

Inpex, along with partners PT Pertamina Hulu Energi Masela and Petronas Masela Sdn. Bhd., has recently been focusing on the growing LNG market in Asia, projected to significantly expand until 2040.

President & CEO of Inpex, Takayuki Ueda, said that they have received initial interest from several buyers in Asia, outlined in letters of intent (LoI). The potential gas demand gathered so far amounts to approximately 25 million tons per year (mtpa).

“So the challenge ahead is how, together with Pertamina and Petronas, we must convert this non-binding interest into binding gas sales agreements,” Takayuki said during the 2023 financial results press conference on Thursday, February 15, 2024.

He mentioned that the LNG market in Asia has recently shown promise in absorbing liquefied natural gas supplies from the Masela Block. Inpex has been coordinating with Pertamina and Petronas regarding the possibility of long-term LNG contracts from the Abadi gas field. “Without long-term LNG sales contracts, the financing of the [Masela Abadi] project will face difficulties in the future, so we are looking for contracts that extend over 10 years,” he added.

Earlier reports from the Ministry of Energy and Mineral Resources (ESDM) disclosed that the investment and operational costs for developing the LNG Abadi project in the Masela Block amounted to approximately US$34.74 billion, equivalent to Rp535.96 trillion. The cost estimate for the development plan includes non-sunk investment costs of US$20.94 billion (including CCS investment of US$1.08 billion), operating costs of US$12.97 billion, and abandonment and site restoration (ASR) costs of US$830 million.

This new estimate emerged after Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif approved Revision 2 of the First Field Development Plan (POD I) for the Abadi Masela Field on November 28, 2023.

“Inpex can carry out activities for the development of the Abadi Field according to the PoD,” Director General of Oil and Gas at ESDM, Tutuka Ariadji, said last December. Specifically, Inpex will conduct design and engineering or front-end engineering and design (FEED) for OLNG, FPSO, GEP, and SURF in 2024, site preparation in 2025, and drilling preparation in 2026.

The cooperation contract for the Masela Block was signed on November 16, 1998, for a period of 30 years and has received a 7-year time compensation and a recent 20-year extension. Therefore, the contract for the Abadi gas field will expire on November 15, 2055. The current holders of participating interest in the Masela Block are Inpex Masela Ltd (65 percent), acting as the operator, PT Pertamina Hulu Energi Masela (20 percent), and Petronas Masela Sdn. Bhd (15 percent).

The Masela Block is one of the largest oil and gas prospects in Indonesia, with production estimated to reach 1,600 million cubic feet per day (MMscfd) of gas or equivalent to 9.5 million mtpa of LNG and 150 MMscfd of pipeline gas, as well as 35,000 barrels of condensate per day (bcpd).

Audina Nur






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
No topics
Schedule a free consultation with us:

We’ll contact you for confirmation.


The Indonesian Ministry of Foreign Affairs has confirmed that Pope Francis, the leader of the Catholic Church, will visit Indonesia from September 3rd to 6th, 2024. The arrival of His Holiness is a state invitation extended by President Joko Widodo.
Indonesian Ambassador to Cambodia, Santo Darmosumarto, has hinted of potential cooperation in infrastructure and connectivity development in Cambodia following his meeting with Cambodian Minister of Public Works and Transport, Peng Ponea, in Phnom Penh on March 22, 2024.
Canadian Ambassador to Indonesia, Jess Dutton, has expressed Canada’s readiness to advance and strengthen bilateral cooperation with Indonesia’s new government. 
Indonesia and Kazakhstan have agreed to enhance cooperation in the fields of mining and energy, transportation and connectivity, as well as digital and creative economy. 
Defense Minister and President elect Prabowo Subianto paid a courtesy call on Malaysian Prime Minister YM Dato’ Seri Anwar Ibrahim on Thursday, April 4, 2024, discussing improvement for bilateral defense cooperation.
Minister Prabowo Subianto paid a courtesy call on Japanese Prime Minister Fumio Kishida in Tokyo, Japan, on Wednesday, April 3, 2024, particularly discussing deeper defense cooperation between Indonesia and Japan.