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RI frustrated over Shell's snail's pace exit from Masela block
Energy minister expresses his frustation over the slow progress of transfer of participating interest from Shell to Pertamina.
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Masela oil and gas block (Courtesy of/maritim.go.id)
E
nergy and Mineral Resources Minister Arifin Tasrif has expressed his disappointment over the slow progress of Shell's withdrawal from the Abadi liquified natural gas (LNG) project in the Masela oil and gas block in Maluku.
The London-based oil and gas company announced its plan to withdraw from the project in 2020, by selling its 35 percent participation interest in the project.
State-owned energy firm Pertamina has declared its interest and agreed to buy the stake, with participation from Malaysia's Petronas. However, the transfer of shares has been slow.
According to Minister Arifin, the negotiation process for the deal has been “stiff” and Shell has opted not to be flexible in the transfer.
"They should be more aware [of the situation], of the length of the history of Shell in Indonesia. They have taken so many benefits," Arifin said on May 19, as quoted by CNBC Indonesia.
Read also: High oil prices spur upstream oil and gas investment
Tutuka Ariadji, oil and gas director general at the energy ministry, said on Tuesday that the slow progress of the transaction resulted in an opportunity loss for the government.
