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Pertamina to conclude takeover of Shell’s Masela shares this month
Pertamina and Petronas are finally set to conclude taking over Shell's 35 percent shares in the Masela oil and gas block, a process that has been beset by fits and starts, including delays due to the COVID-19 pandemic.
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An offshore rig at the Masela oil and gas block in Maluku burns off excess gas, as seen in this undated photograph. (Courtesy of/maritim.go.id)
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tate-owned oil and gas holding company Pertamina was set to finish taking over Shell’s 35 percent participating interest in the Masela oil and gas block in Maluku by the end of June, the government said on Monday.
The takeover will involve a consortium established with Malaysian state-owned oil and gas firm Petronas to conclude the purchase of shares from London-headquartered energy giant Shell.
Japanese oil company Inpex is to retain control of the remaining 65 percent stakes in the block.
"Regarding the Masela Block, insyaallah [God willing], we will complete the shares transfer agreement at the end of the month. There has been a meeting point," Energy and Mineral Resources (ESDM) Minister Arifin Tasrif told a meeting with the House of Representatives on Monday.
Arifin had earlier expressed his frustration over sluggish progress in Shell’s withdrawal from the Abadi liquefied natural gas (LNG) project in the Masela Block.
Read also: RI frustrated over Shell's snail's pace exit from Masela block
Shell announced in 2020 its plan to exit the project by selling its 35 percent participating interest, but the shares’ transfer to a new buyer has been slow, with the government describing the negotiations as “stiff”.
