Inpex's partner Shell is planning to divest its 35% participating interest (PI) in the Masela PSC, located in Timor Sea. As reported by local media on 5 July 2020, quoting SKK Migas's Deputy for Operations, Inpex and Shell are in discussion for the former to take up the PI, and at the same time Inpex could continue to look for a new partner to join the PSC.  The block contains the Abadi field which is under development phase. The operator last finalized in mid-June 2020 two contractors for the subsea umbilicals, risers, and flowlines FEED work. Likewise, the operator also received approval from the Regional Governor of Maluku for the land acquisition implementation stage. The land area, that covers approximately 27 hectares, will host a port to be utilized for movement of goods, equipment, spare parts, as well as building the onshore LNG (OLNG) plant.  The Abadi project was initially envisioned by Inpex as a Floating LNG (FLNG) development due to the remote location of the field, in deep water and away from existing infrastructure. However, in March 2016, the President of Indonesia instructed the operator to change the FLNG scheme to an OLNG development, in order to maximize the benefit for local communities.  Inpex received approval for the revised Abadi POD on 12 July 2019. The project will require an investment of approximately USD 18-20 billion. Concurrently with POD approval, the Ministry of Energy and Mineral Resources also granted a seven-year additional time allocation for the current PSC plus a 20-year extension, moving the contract expiry date from 2028 to 2055. The seven-year period is to compensate for the time spent studying the previously proposed offshore LNG proposal, while the 20-year extension will allow for the realization and full monetization of the project, ensuring sufficient financial conditions for the participants.  Background Information  The Masela PSC was originally awarded to Inpex (100%, operator) in 1998. On 24 July 2011, Inpex signed an agreement to farm-out 30% participating interest in the Masela PSC to Shell. Official approval of the deal was reported on 8 December 2011. Shellâs involvement in the Prelude FLNG project in offshore Australia played a role in its selection as a partner. Farm-in opportunity for non-operating interest in the block continued to exist after the farm-out to Energi Mega Persada in November 2009. In 2013, Energi Mega Persada decided to exit the block, subsequently the 10 % PI by the company was taken over by Inpex and Shell, each added extra 5% to their existing share.
Indonesia (Bonaparte B.) Masela op. by SHELL (35%), INPEX (34%), JOGMEC (31%), Shell is planning to divest its 35% participating interest (PI) in the Masela PSC, located in Timor Sea. 