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Pertamina mulls finding new partner for Masela block
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PHE president director Wiko Migantoro (left) signs a purchase agreement for a participating interest in the Masela block at the Indonesian Petroleum Association (IPA) Convention & Exhibition at the International Conference and Exhibition Center (ICE) BSD in Tangerang, Banten, on July 25, 2023. At the same time, Pertamina CEO Pertamina Nicke Widyawati signs a strategic partnership memorandum of understanding (MoU) for the Masela block’s development with Inpex. (Pertamina/-)
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tate-owned oil and gas giant Pertamina is considering looking for a new partner to work on the Abadi liquefied natural gas (LNG) project in the Masela oil and gas block in Maluku, citing the technical complexity of the project.
Pertamina president director Nicke Widyawati told lawmakers on Wednesday that she did not rule out the possibility of “other parties participating in the project to meet the competencies of carrying out the block’s operations”.
“From the technical point of view, the project is complicated, so we have to ensure everything goes smoothly,” she said during a meeting on Wednesday with House of Representatives Commission VII overseeing energy and mineral resources.
Read also: Masela Block to enter FID stage by the end of 2023
Pertamina entered the Masela block with Malaysia’s Petronas on July 25, purchasing a combined 35 percent participating interest in the project from British oil and gas firm Shell for US$650 million. Shell decided to withdraw from the block’s development in 2020.
The 35 percent participating interest was split up between Pertamina Hulu Energi (PHE), Pertamina’s upstream unit, with 20 percent of the block and Petronas Masela with 15 percent.
The other 65 percent of the block remains under the control of Japanese oil and gas firm Inpex.
