LOL, it needs time to get the oil and gas out first, all of the current production has been sucked to meet current demand.
German should invest in Indonesia gas oil field but it needs another 8 years to get the gas out from the mother earth.
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This is what the boss of Inpex said about the Masela LNG production
NEWS - Pratama Guitarra, CNBC Indonesia
17 February 2022 11:40
Jakarta, CNBC Indonesia - The Masela Block Liquified Natural Gas (LNG) project is rumored to be experiencing a production decline from the previous year 2027 to 2030.
This is because Inpex Corporation and Shell as the operator of the Masela Block are considering the inclusion of Carbon Capture, Utilization and Storage (CCUS) into the revised
Plant of Development (PoD) project that is included in this National Strategic Project (PSN).
Inpex CEO, Takayuki Ueda explained, that Inpex is conducting a comprehensive measure study such as the introduction of CCUS to make the Masela Block LNG project cleaner. "So this project can reduce costs further and promote the project as a competitive and clean project with the aim of starting production in the early 2030s," said Takayuki.
Deputy of Operations for the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas), Julius Wiratno said that currently Inpex Masela has not submitted a proposal to postpone the completion of the Masela LNG project to 2030.
"SKK Migas has asked Inpex to immediately (submit a Plant of Development/PoD revision) if that is what we want, the planning team in particular can immediately conduct a review and evaluation," explained Julius to CNBC Indonesia, Thursday (17/2). /2022).
As is known, currently Inpex Masela Ltd and Shell as the operator of the Masela Block are revising the PoD of the oil and gas working area which is included in the National Strategic Project (PSN).
The PoD revision relates to the inclusion of carbon capture, utilization and storage facilities or CCUS. This is done so that the assets of the Masela Block in this case the Masela LNG can be said to be competitive because it has green energy requirements.
"The PoD revision has not been submitted yet. He said so (must include CCUS) but we don't know the details yet," said Julius.
SKK Migas is actually worried about this giant gas project worth US$ 19.8 billion. What is clear is that his party continues to encourage Inpex to continue to complete the project. Because, said Julius, Inpex's
strategic decision is needed for the long term related to the
competitiveness of its products.
As is known, last year Shell, the owner of a 35% stake in the Masela Block, decided to leave the perpetual gas project. However, Shell's departure has not been carried out because there are no investors who want to buy Shell shares.
Previously, Deputy Head of SKK Migas, Fatar Yani Abdurrahman told CNBC Indonesia that Shell was still having trouble finding investors to buy the divested 35% stake in the Masela Block. "The assets are considered uncompetitive, because of the current
green energy requirements ," explained Fatar to CNBC Indonesia, Thursday (12/30/2021).
Fatar Yani reads that as a requirement for green energy the development plan or Plant of Development (PoD) in the Masela Block must include carbon capture, utilization and storage facilities or familiarly called CCUS. "If we read it indirectly, it becomes a requirement," explained Fatar Yani
Unfortunately Fatar does not explain in detail what assets are considered uncompetitive and do not qualify for green energy. However, he said, apart from the Liquified Natural Gas (LNG) assets which are planned to be built on shore or on land in the Tanimbar Islands Regency, Maluku, he said, they are also not competitive.
"Inpex also sees LNG as uncompetitive in the future. So LNG products must also be green. That's why they proposed the CCS/CCUS for PoD revision," said Fatar Yani.
Currently, Shell is the owner of 35% participating interest in the Masela Block. The remaining 65% is owned by Inpex Masela. The Abadi field has an investment value of US$ 19.8 billion, which is targeted to produce 1,600 million cubic feet per day (mmscfd) of gas or the equivalent of 9.5 million tons of LNG per year (mtpa) and 150 mmscfd of piped gas and 35,000 barrels of oil. per day. The project was previously expected to be operational in the second quarter of 2027.
Bos Inpex Takayuki Ueda tengah melakukan kajian atas CCUS yang akan masuk ke dalam proyek LNG Blok Masela
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