Exploration & Production

Masela spat delays Indonesian mega-project

Inpex, which is developing Indonesia's Masela Block, is bogged down in negotiations with Jakarta over the terms of the contract and how to process the gas Inpex, which is developing Indonesia's Masela Block, is bogged down in negotiations with Jakarta over the terms of the contract and how to process the gas.
By Damon Evans 20 January 2017 0 23611
A rig off the Indonesian coast. The country is facing delays in developing the offshore Masela Block. (SKKMigas)

Development of the gas-rich Masela Block off Indonesia remains stalled, despite a senior Indonesian minister telling the press that a deal had been made with Inpex, the block’s operator.

The government and the Japanese company are understood to be negotiating mutually acceptable contract terms. Sources close to the project told Interfax Natural Gas Daily that Inpex and Shell, which are developing Masela as a joint venture, want approval for a 9.5 mtpa LNG plant – larger than Inpex’s 8.9 mtpa Ichthys project in Australia, which cost...