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SKK Migas upbeat Masela gas project will be completed on time
The Masela Block’s development plan is expected to require US$18 billion to $20 billion.
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The government hopes that the Masela oil and gas block can begin operating in 2027 (Courtesy of/maritim.go.id)
T
he Upstream Oil and Gas Regulatory Task Force (SKK Migas) is upbeat that construction on an onshore liquefied natural gas (LNG) plant, which will receive gas supplies from the Masela Block, can be completed in the second quarter of 2027 as planned.
With the government’s approval over a revision of the plan of development (PoD) of the multibillion gas-rich Masela Block in the Arafura Sea, gas block operator and Japanese oil giant Inpex Corp can soon enter the final investment decision (FID) process before beginning construction work, said SKK Migas chairman Dwi Soetjipto.
The FID process, according to Dwi, is targeted to be completed within a year after the PoD revision is signed, or early second half of next year.
Dwi said that Energy and Mineral Resources Minister Ignasius Jonan signed the PoD last week.
“Now, he’s going to bring the news to the President as it’s a project that involves a huge investment,” he said in Jakarta on Friday.
Dwi, a former chief of state-owned energy giant Pertamina, further said that the PoD was signed after the task force had consulted with the Corruption Eradication Commission (KPK).
Inpex and the government signed in June in Tokyo a heads of agreement (HoA) that contains several aspects, namely production sharing contract (PSC) period, financial conditions and cost estimation, which will be agreed upon in advance in order to secure sufficient funding.
