INDONESIA’s government and Japan’s Inpex Corp have finally come to an agreement over the Abadi gas field in the offshore Masela block, making way for potential development of the project some two decades after the field was first discovered.
In a statement on Monday, the Indonesian Ministry of Energy and Mineral Resources said it had come to the historic agreement with Inpex earlier this month and had agreed on a final plan of development framework.
Both parties succeeded in achieving the "win-win solution" through a profit-sharing scheme, in which the government received at least 50%.
"Finally Inpex and SKK Migas agreed on the main points of the development of the Masela block… this discussion has been going on for 18 years," Minister for Energy Ignasius Jonan said.
"The investment value is between US$18-US$20 billion with fair distribution for the Republic of Indonesia and contractors."
Capital expenditure on the deepwater Masela discovery is expected to reach US$20 billion.
Development of the field will involve a floating facility with a processing capacity of up to 6.8 million tonnes of LNG per annum.
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Source: Energy News Bulletin