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Masela Block to enter FID stage by the end of 2023
The development of the Abadi liquefied natural gas (LNG) project in the Masela Block is set to enter final investment decision (FID) stage by the end of 2023.
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An offshore oil and gas rig is seen in the Mahakam Block in East Kalimantan. (Pertamina/Pertamina)
T
he development of the Abadi liquefied natural gas (LNG) project in the Masela Block is set to enter the final investment decision (FID) stage by the end of 2023.
Upstream Oil and Gas Regulatory Task Force (SKK Migas) head Dwi Soetjipto told reporters on Wednesday that the task force would finalize the revision of the plan of development (POD), which will include a carbon capture, utilization and storage (CCUS) facility.
“[SKK Migas] hopes that the POD will be finalized by this year or early next year because the POD needs to be finalized before moving on to the FID [stage],” he said in Jakarta.
Japan’s Inpex – which controls the remaining 65 percent of the block – wants to include a CCUS facility to reduce the Abadi natural gas field project’s carbon dioxide emissions.
However, constructing a CCUS facility would increase the cost of the gas field, so SKK Migas has previously requested Inpex to reduce the construction costs of the CCUS facility to maintain the economic value of the project.
Dwi estimated that the gas field would require another US$1.2 billion to $1.4 billion in investment to develop a CCUS facility.
Read also: Pertamina should ‘think twice’ about buying Masela stake
