INPEX moves Abadi’s goal posts

Thursday, 27 June 2019
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INPEX Masela, Ltd, a subsidiary of INPEX Corp, has submitted a revised plan of development (POD) to the Indonesian Government for the Abadi LNG project.

The revised POD is based on an onshore LNG development scheme with an annual LNG production capacity of 9.5 mill tonnes instead of an offshore facility.

The project involves developing the Abadi gas field in the Masela Block located in the Arafura Sea in Indonesia.

A submission of a revised POD follows a series of dialogues between the authorities and INPEX, as the operator of the project on behalf of the joint venture - INPEX Masela and Shell Upstream Overseas - to secure its competitiveness through a Heads of Agreement (HOA) signed with the authorities on 16th June, 2019.

INPEX said that it anticipated that the revised POD will be approved at an early stage, after which the company will work in partnership with Shell toward reaching FID and ultimately commencing production, with the co-operation of the Indonesian Government.

Li P’ing Yu, Shell’s Vice President for Abadi, said of the new submission, “Shell is pleased with the progress made by the joint venture, led by INPEX as operator, towards the development of the Abadi project. The submission of the revised POD is a significant milestone for the project,which advances the joint venture closer to delivering a major National Strategic Project for Indonesia.”

”Utilising the knowledge and experience gained through operating the Ichthys LNG Project in Australia, INPEX will continue to work closely with its partner Shell to make the necessary preparations to commence FEED work at an early stage, following the authorities’ approval of the revised POD, and aims for the production startup in latter half of 2020s,” INPEX said. 

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