The Energy and Mineral Resources Ministry's oil and gas director general, Djoko Siswanto, said on Monday that the gas-rich Masela block’s operator, Japanese oil firm Inpex, had pledged to submit the block's development plan by next month.

Djoko said Inpex made the commitment when he visited the company's headquarters in Japan recently.

“One of the things we discussed at the meeting was the POD [plan of development] of the Masela block, which Inpex agreed to submit next month,” he said.

Djoko said that in principal, the government had agreed to grant a 20-year contract extension to Inpex for the Masela block, but a definite decision would not be made until November, 10 years before the current contract expires in November 2028.

 Inpex and Royal Dutch Shell own 65 percent and 35 percent shares in the Masela block, respectively. The onshore Masela block is worth around US$19 billion.

The Masela block is projected to produce 150 million standard cubic feet per day of natural gas and 9.5 million tons per annum of liquefied natural gas once it comes on stream in 2027. (bbn)