JAKARTA. Ministry of Energy and Mineral Resources (ESDM) decided to allocate the Abadi gas field in Masela (South Maluku) bloc to three local companies. Whereas, to date, Inpex Masela Ltd has not yet submitted the revision of plan of development of the changes on the scheme of gas production process from off shore refinery (FLNG) to on shore refinery.

Vice Minister of Energy and Mineral Resources Arcandra Tahar said that some companies, such as fertilizer and petrochemical companies, are interested in Abadi gas field. Therefore, the Ministry of Energy and Mineral Resources arranged the allocation of the gas field to follow up the request from the Ministry of Industry.

However, Arcandra has not yet specified the name of the companies. He only mentioned that the letter from the Minsitry of Industry to the companies does not include the assignment of the gas purchase agreement. “It will be carried out step by step,” Arcandra said.

Director General of Chemical, Textile, and Miscellaneous Industries at the Ministry of Industry Achmad Sigit Dwiwahjono confirmed that the directorate had sent a request letter to the Ministry of Energy and Mineral Resources. “We have sent the request letter related to the three companies, which received the gas field allocation in Masela Bloc,” he told KONTAN, Friday (25/11).

Ministry of Industry had requested the Ministry of Energy and Mineral Resources to allocate 240 mmbtu, 100 mmbtu, and 130 mmbtu to PT Pupuk Indonesia, Elsoro Multi Prima/Sojitz, and Kalimantan Metanol Indonesia, respectively. “ESDM has not yet given the final decision,” Sigit said. The three companies are the most ready of any company to work on the gas field.

Senior Manager Communication And Relation of Inpex Corp Usman Slamet refused to give comment on the matter of the gas field allocation. “We are sorry, we cannot give any comment related to this matter, as it is the privilege of the government,” he said.

The revision of the plan of development of Masela Bloc is scheduled to be completed at the beginning of the first quarter of 2017.

In this case, Ministry of Energy and Mineral Resources is still reviewing the terms and conditions. “We should maintain our position to secure a win-win negotiation. But, it is difficult to determine the win-win formulation,” said Arcandra. Three on shore refineries will be established in Aru Archipelago, Selaru Archipelago, and Yamdena Island.

Those are the most feasible locations, on the grounds that in terms of technical matter, the pipes can directly flow the gas to Masela Bloc. Furthermore, technically, the three islands are suitable for the location of petrochemical production. “It’s also related to the economy,” said Arcandra.

According to Usman, the government and Inpex continue to have intensive meetings to discuss the conditions needed for the project. “The discussions are running to the positive way,” he said.

(Muhammad Farid/Translator)

Editor: Barratut Taqiyyah Rafie