Japan's INPEX said it is trying to confirm the facts following a news report stating that Indonesian President Joko Widodo has rejected a proposal to build a floating liquefied natural gas (FLNG) plant in the country's east, saying that an onshore plant would benefit its economy more.
The oil and gas firm said today (24 March): "Going forward, INPEX will openly disclose in a timely manner any developments on this subject as appropriate."
Reuters reported on 23 March that Indonesia's energy regulator SKKMigas warned that rejecting the $15 billion plan to process gas from the Masela offshore field would lead to delays and job cuts.
In September, INPEX submitted a new plan for the Abadi development, calling for a larger FLNG plant capacity. Inpex had been considering an FLNG plant with 2.5 MTPA processing capacity. The new plan called for an increase to 7.5 MTPA. At the time of the filing, INPEX said the new mega-FLNG plan was the "optimal" development solution.
The Abadi gas field is in the Masela Block, Arafura Sea, and is being developed by INPEX (65%, operator) with partner Shell (35%).
The initial plan had been approved by the Indonesian government in 2010. Between November 2012 and November 2014, INPEX conducted front-end engineering and design (FEED) works for both subsea, umbilical, riser and flowlines and the FLNG plant based on POD-1. Based on evaluations of three appraisal wells drilled between June 2013 and April 2014 (the drilling campaign), INPEX confirmed the presence of a greater volume of Abadi gas reserves, which was certified by Indonesian authorities.
The Masela Block has a surface area of about 3221sq km and is located about 150km offshore Saumlaki in Maluku Province. Water depth is about 400-800m. INPEX Masela acquired the block in 1998, and discovered the Abadi gas field in 2000.