This Is The Reason Shell Released 35 Percent PI Blok Masela To Pertamina Below 1 Billion US Dollars

Illustration of the Masela Block (Photo: dock. Antara)

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto revealed the reason Shell wants to release 35 percent of the participation or participation rights (PI) at a price below 1 billion US dollars to Pertamina.

According to him, this is because the Government hopes that Shell can accelerate the running of this project so that the progress of negotiations between the two companies runs quickly.

"We hope that Shell can accelerate this project so that it can be dealt immediately," Dwi told the media quoted on Monday, June 10.

In addition, he also reminded that Shell's project in Indonesia is not only the Masela Abadi Field Project but also downstream business, including the renewable energy business that will be carried out in Indonesia.

"We remind you that there are businesses here and there. Here the state has a great interest in maintaining energy security and Masela is highly expected," said Dwi.

Thus, he continued, Pertamina is ready to work on the Abadi Masela field project after the official purchase signature is made. Later Pertamina will manage Masela with the Malaysian oil and gas company Petronas.

Previously, Dwi had also given a leak regarding the portion of the participation rights of each company in managing Masela.

Dwi explained, if based on the information received, Pertamina would narrow down by 20 percent and Petronas by 15 percent.

"This depends on them (Pertamina and Petronas). If I'm not mistaken, 20 percent of Pertamina, 15 percent of Petronas. Pertamina must be bigger," said Dwi.

Dwi said that the presence of Petronas reduced Pertamina's burden in taking over the PI by 35 percent.

He said, since the beginning Petronas had a high interest in joining Pertamina in managing Masela.

"At least what we know is that Petronas is quite interested in advancing there," explained Dwi.

Regarding the signing of the inter-companies agreement, he said, his party is still waiting for the two companies that are currently compiling the Shares Purchase Agreement (SPA) so that he predicts the signing will only take place in the middle of this month.