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Shell begins divestment process of gas rich Masela Block

Shell’s plan to exit the Masela block dealt a major blow to Indonesia’s energy ambitions as the block, which holds 10.7 trillion cubic feet of proven gas reserves, carries the biggest investment value among Indonesia’s four nationally-strategic oil and gas assets.

Norman Harsono (The Jakarta Post)
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Wed, August 26, 2020

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S

hell has received government permission to open geological data on the gas-rich Masela block in Maluku to potential buyers, marking its first step in divesting the asset.

The company will divest the block over an estimated 18 months time while the block’s lead operator, Japan’s Inpex Corp, and the Upstream Oil and Gas Special Regulatory Taskforce (SKK Migas) would focus on developing the nationally-strategic Abadi gas project within the block, said an SKKMigas official.

“The aim is to have [Abadi] onstream by 2027 and we have agreed with operators to try and stick with this schedule,” SKKMigas head Dwi Soetjipto told lawmakers on Monday.

He emphasized that Shell would continue developing the Abadi field despite having received permission from the Energy and Mineral Resources Ministry and the Investment Coordinating Board (BKPM) to begin divestment.

Shell’s plan to exit the Masela block dealt a major blow to Indonesia’s energy ambitions as the block, which holds 10.7 trillion cubic feet of proven gas reserves, carries the biggest investment value among Indonesia’s four nationally-strategic oil and gas assets.

 

The Masela block, which is 35 percent operated by Shell and 65 percent operated by Japan’s Inpex Corp, holds the Abadi project slated to produce 347 thousand barrels of oil equivalent per day (mboepd), which is more than the other three assets, SKKMigas data show.

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