This Is The Estimated Cost For The Development Of The Masela Eternal Field

Masela block illustration (Photo: Doc. Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin tasrif has approved the revision of 2 development plans or the Plan of Development (PoD) of Abadi Masela Field on November 28, 2023.

The Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that including the Revision of 2 POD Is CCS activities into the scope of the project where CCS facilities will be built to capture native CO2 from Abadi Field and store it back in Abadi Field. The target of Ready for Startup for this project is by 2030.

"The development of the Masela Block is one of the government's efforts to support national energy security and achieve the gas production target of 12 bscfd, which is in line with the achievement of the Net Zero Emission target," said Tutuka in a statement to the media, Monday, December 4.

Tutuka explained that the estimated cost required to develop Abadi Field includes investment costs (outside the sunk cost) of 20,946 million US dollars, including CCS costs of 1,088 million US dollars, Operational Costs of 12,978 million US dollars and Abandonment and Site Restoration (ASR) costs of 830 million US dollars.

For information, what is meant by the development of the Eternal Field according to POD is FEED for OLNG, FPSO, GEP and SURF in 2024, Site Preparation in 2025 and Drilling preparation in 2026.

The WK Masela Cooperation contract was signed on November 16, 1998 for a period of 30 years and has received compensation for 7 years and an extension of 20 years, so the contract will expire on November 15, 2055.

The current Interes WK Masela Participation Holder is Inpex Masela Ltd at 65 percent and at the same time acts as an operator; PT Pertamina Hulu Energi Masela at 20 percent and Petronas Masela Sdn. Bhd 15 percent.

The total Abadi Field gas reserves are 18.54 TSCF with a cumulative gas production of 16.38 TSCF (gross) or 12.95 TSCF (sales) and a 255.28 MMSTB condensate. Production capacity of 1,600 MMSCFD + 150 MMSCFD (pipeline), the condensate of 35.000 BCPD.