Indonesia approves delayed Abadi Masela gas revised development plan
Business
Indonesia approves delayed Abadi Masela gas revised development plan
JAKARTA (Reuters) - Indonesia has approved a revised development plan for the long-delayed Abadi Masela gas project with $20 billion in investment targeting production to start in 2029, an energy ministry official said on Saturday.
The project, in which Japanese oil and gas company Inpex (1605.T) is the lead investor, has faced years of delay due to various changes, from moving the project onshore to accommodating the government's request and changing contractors.
The revised plan "has been approved", said Tutuka Ariadji, director general of oil and gas at the energy ministry. "The investment at around $20 billion, to start production by the end of 2029."
The Abadi liquefied natural gas (LNG) project is expected to produce at its peak 9.5 million tonnes of LNG a year, 150 million standard cubic feet per day of pipe gas and 35,000 barrels of condensate per day, upstream regulator data showed.
Inpex submitted the revised development plan for the project earlier this year to incorporate a carbon capture and storage component.
Shell Upstream Overseas Services, a subsidiary of Shell, in October, completed the sale of a 35% participating interest in Indonesia's Abadi Masela gas project to Indonesia's Pertamina and Malaysia's Petronas.
