Shell Seeks Exit from Major Indonesian Gas Project: Press
Anglo-Dutch major Shell is seeking a buyer for its 35% stake in Indonesia's flagship Masela gas block, the country's upstream regulator SKK Migas told local press on July 6. The company told NGW July 10 it could not give guidance on that.
According to SKK, Shell's decision is a response to low oil prices and development delays caused by the Covid-19 pandemic. Shell and Japanese partner Inpex, which owns the remaining 65% of Masela, had intended to develop an LNG export plant based on the 10.7 trillion ft3 (303bn m3) of gas at the block's Abadi field.
The plant is due to start up in 2027 and export 9.5mn mt/yr of LNG. A final investment decision has not been reached, however, and it is uncertain how Shell's potential exit might affect these plans.
The Covid-19 pandemic has prompted the majors to fast-track their divestment plans, to settle debts, fund dividends and raise capital for core projects. Shell, which recently warned it would book up to $22bn in non-cash impairments after cutting its forecasts for oil and gas prices, is understood to be seeking the sale of assets in Australia and Norway as well.