Pertamina Garap Blok Masela, Head Of SKK Migas: It Is Hoped That November Will Start Offering

Head of SKK Migas Dwi Soetjipto. (Photo: Doc. Antara)

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Dwi Soetjipto explained Pertamina's plan to participate in the process of taking over the Abadi Masela Block.

Dwi said Pertamina was still carrying out the study and assessment process regarding how much portion would be taken over.

He hopes that the process will be carried out in November.

"Currently Pertamina is conducting a study on this project and it is hoped that in November Pertamina will offer a non-binding officer. Starting the assessment when the calculation is complete," he said at a press conference in Jakarta quoted on Tuesday, October 18.

Through a non-binding officer process, said Dwi, Pertamina will make offers that are not binding on Shell.

Meanwhile, according to him, Inpex as the manager of Blok Masela wants Pertamina to take all of Shell's roles in Masela.

"Currently Pertamina is starting to count the percentage that will be taken but Inpex hopes that Pertamina will be able to take all of Shell's roles in the Abadi Masela Project," added Dwi.

As for taking over Blok Masela from Shell Pertamina, it must disburse funds amounting to US $ 1.4 billion to acquire 35 percent of Shell's shares.

Just so you know, at the initial POD, Masela's investment value was estimated at 19.8 billion US dollars with an LNG facility capacity of 9.5 Metric Tons Per Annum (MTPA) or the equivalent of 1,600 million cubic feet per day (MMscfd) and piped gas reaching 150 MMscfd.

In addition, the Masela Block is projected to generate a condensate of 35,000 barrels per day.

Previously, President Joko Widodo asked that 35 percent of the participation rights released by Shell in Blok Masela could be taken entirely by PT Pertamina (Persero) or a national oil and gas company through financing supported by the Indonesia Investment Authority (INA).

"The president has ordered that those who come out be replaced by national entrepreneurs either through INA or BUMN," Bahlil said during a press conference Wednesday, July 27.