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Construction of Abadi LNG facilities to contribute Rp 73 trillion to economy
The Abadi LNG Project is expected to be able to produce 9.5 million metric tons of LNG per annum (mtpa) and up to 35,000 barrels of condensate per day.
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One of the exploration facilities in the Masela oil and gas block in Maluku burns off excess gas. (Courtesy of/maritim.go.id)
T
he Abadi liquified natural gas (LNG) plant in the Masela block of Maluku is expected contribute Rp 73 trillion (US$5.27 billion) to the economy during its construction as it is to implement a 26-percent local content requirement (TKDN) for its production, according to a public official.
The head of the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas), Dwi Soetjipto, said recently that according to existing regulations about 26 percent of goods and services for the $19.8-billion LNG project should be procured from local companies.
"The goods and services that should be procured from the local market will be worth about Rp 73 trillion," he said on Dec. 19.
The government is expecting the proportion of TKDN in the total procurement of goods and services in the oil and gas sector to reach 70 percent this year, up by 7 percentage points from last year.
The Abadi LNG project, 150 kilometers off the Saumlaki coast in Maluku province, is operated by Japanese oil and gas company Inpex Masela Ltd., which has a 65 percent stake in the project. The remaining 35 percent stake belongs to British-Dutch oil and gas company Shell Upstream Overseas Ltd.
The Abadi LNG Project, with a 2,503-square-km contract area and a depth of between 400 and 800 meters, is expected to be able to produce 9.5 million metric tons of LNG per annum (mtpa) and up to 35,000 barrels of condensate per day.
Soetjipto said that 60 percent of the total production would be sold on the domestic market and the other 40 percent in overseas markets.
