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RI approves $34.74 billion Masela Block investment plan
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Pertamina Hulu Energi (PHE) president director Wiko Migantoro (left) signs the Masela Block sales and purchase agreement at the Indonesian Petroleum Association (IPA) Convention & Exhibition held at the International Conference and Exhibition Center (ICE) in BSD, Tangerang, Banten, on July 25, 2023. At the same time, Pertamina CEO Pertamina Nicke Widyawati signed a strategic partnership memorandum of understanding (MoU) for the Masela Block development with Inpex. (Pertamina/-)
T
he government has approved the revised plan of development (POD) for the Abadi liquefied natural gas (LNG) project in the Masela Block, which includes a carbon capture storage (CCS) facility slated to begin operations in 2030.
Energy and Mineral Resources Minister Arifin Tasrif said the investment and operational costs of the project were expected to total around US$34.74 billion.
That estimate comprises $20.94 billion, $12.97 billion and $830 million for investment excluding sunk costs, operational costs and abandonment and site restoration (ASR) costs, respectively, according to the ministry’s data.
Some $1.08 billion required to build the CCS facility is included in the investment costs.
The energy ministry’s Oil and Gas Director General Tutuka Ariadji, expressed hope that operation of the field would take off soon, in line with the government’s efforts to achieve its net-zero emissions targets.
“Inpex can develop the Abadi field as per the POD,” he said in a statement issued on Monday.
Read also: Pertamina, Petronas secure Shell’s Masela stake for $650m
