INPEX and Shell have completed the necessary procedures for the transfer of PT EMP Energi Indonesia(EMPI)’s 10% participating interest in the Masela Block, Arafura Sea, Indonesia (Abadi LNG Project).
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.
The Abadi gas field was discovered in 2000, and the subsequent six appraisal wells and the reservoir study results confirmed sufficient gas reserves for LNG evelopment. In December 2010, the plan of development was approved by the Indonesian Government that the Abadi gas field would be developed in phases and that a Floating LNG (FLNG) plant could 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 pursuing future subsequent development utilizing the gas reserves.