Minister Of Energy And Mineral Resources Reveals Advanced Plans After Acquisition Of Masela Blocks: Done In 3 Months

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasarif revealed that the follow-up plan was after Pertamina and succeeded in acquiring the Masela Block and holding the participation rights of 20 and 15 percent, respectively.

Arifin said that if he targets after the Sales Purchase Agreement (SPA) with Shell, his party targets completion and finalization to take over the Masela block to be completed in 3 months.

"It is hoped that in 3 months the work plan will be completed, after that it will submit a plan of development (POD)," Arifin told the media, Friday, July 28.

For now, said Arifin, his party will form a team in August to prepare further work plans.

After completion, Pertamina will submit a POD and the certainty of the production will take place.

"If our road POD is there is certainty when the first production can occur," added Arifin.

Previously, it was reported that the signing of the sales purchasing agreement (SPA) was witnessed by the Minister of Energy and Mineral Resources Arifin Tasrif, Director General of Oil and Gas Tutuka Ariadji, Head of SKK Migas Dwi Soetjipto, and President Director of Pertamina Nicke Widyawati and President & Chair Executive Employee of the Petronas Collection Tan Sri Tengku Muhammad Taufik.

Later, the management of the Masela Block will be carried out by Pertamina and Petronas, which hold Pertamina's participation rights by 20 percent and Petronas by 15 percent.

Quoted from Shell's official lama, the basic consideration for the sale was US$325 million in cash with an additional amount of the contingent of US$325 million which must be paid during the final investment decision (FID).

"The decision to sell our participation in Masela PSC is in line with our focus on a disciplined capital allocation," said ShellZo's Director of Integrated Gas and Hulu.