SKK Migas Asks Inpex To Sign Gas Sale And Purchase Agreement With PLN To Pupuk Indonesia

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Djoko Siswanto (left). (Photo: Doc. VOI)

JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) Djoko Siswanto has asked Inpex Corporation to sign a gas purchase agreement or Head of Agreement (HoA) with PT Pupuk Indonesia, PT PGN and PT PLN (Persero).

These three SOEs will later become buyers or offtakers of liquefied natural gas (LNG) from the Abadi Field project in Blok Masela

Djoko said this was conveyed to Inpex after the Japanese company went to SKK Migas to notify the Blok Masela Final Investment Decision (FID) project would begin in April 2025.

"The Inpex management came to SKK Migas. He reported. That the FID will be discussed later starting April. Yes, then in May I asked for a HOA signature or a gas buying and selling agreement," said Djoko, quoted on Tuesday, February 25.

Djoko ensured that the agreement to be signed in May will coincide with the 2025 Indonesian Petroleum Association (IPA) agenda. As for the initial stage, Inpex will provide 28 LNG cargoes.

"Later there will be a total of 28 cargoes," said Djoko.

Just so you know, previously the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia confirmed that he had brought down SP 1 to Inpex.

Bahlil threatened to revoke the permit that Inpex had narrowed if it did not raise the status of the Masela Block. The reason, he said, is that this giant oil and gas block has stalled for 26 years and has not produced.

"There is one working area that has been 26 years old, has found one of the largest gas, but its status has not been raised. I have made a first warning letter. Second, (if) I can't anymore, I will withdraw. This is big, and this will definitely be an uproar," explained Bahlil.