Indonesia, Inpex Agree on Masela Framework
Indonesian oil and gas regulator SKKMigas and Japan’s Inpex have agreed on the final plan of development for the Masela gas block in the Arafuru Sea, Maluku, Indonesia’s energy ministry said May 27.
The ministry expects an investment of close to $20bn in Masela block and the government to have at least a 50% share in production from the block. The agreement was reached during Indonesian officials’ visit to Japan.
The signing of the agreement was delayed due to change in the original plan. In March 2016, the country's president Joko Widodo said production facilities of Masela LNG project will be built onshore, instead of offshore as Inpex had proposed. As a result, the Japanese company had to review its plans.
The Masela block contract was signed in 1998, and Inpex as operator owns 65% share in the block while Shell owns the rest 35%.