Japan’s INPEX has announced today that its affiliate, INPEX Masela, Ltd. and Shell Upstream Overseas Services limited, a subsidiary of Royal Dutch Shell plc (Shell), have signed an Agreement with PT EMP Energi Indonesia (EMPI) for the acquisition of EMPI’s 10% participating interest in the Masela Block, Arafura Sea, Indonesia (Abadi LNG Project).
This transaction is subject to approval of the Indonesian Government and satisfaction of certain other conditions. This acquisition takes place following EMPI’s decision to divest its participating interest in the Abadi LNG Project. Based on the agreement, INPEX will continue to act as the operator and retain a 65% participating interest while Shell will hold a 35% participating interest.
INPEX continues to seek support from the Indonesian Government and other stakeholders for a successful commercial production from the Abadi LNG Project.
About the Abadi LNG Project
The Abadi gas field was discovered in 2000, and the subsequent six appraisal wells and the study results confirmed the sufficient gas reserves for LNG development. In December 2010, the plan of development was approved by the Indonesian Government that the Abadi gas field will be developed in phases and a Floating LNG (FLNG) plant will be constructed and utilized for an annual production of 2.5 million tonnes for the first phase development. INPEX is now conducting Front End Engineering and Design (FEED) work to ensure successful start-up of the Abadi LNG Project while further approaching for future subsequent development utilizing gas reserves.