JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif has stated that the government is trying to take back Shell's participation rights over Blok Masela. Arifin said that currently his party is also reviewing the agreement if Indonesia has to face a lawsuit in international arbitration if Blok Masela is taken back by Indonesia.
"Yes, we'll see where the strong conflict (arbitration) is. We are also reviewing," said Arifin as quoted by VOI on Saturday, May 27.
Arifin also said that he was also disappointed with the Dutch oil and gas company because the transfer process took a long time and was complicated. Shell has a participation right of 35 percent in Blok Masela which is also managed by Inpex which holds 65 percent of the shares.
Arifin explained that the Plan of Development (POD) process occurred for a long time, namely 2019. Meanwhile, based on the agreement in the POD, it was stated that if in the five years since the PoD was agreed that this project would not develop, it would be returned to the state.
"Yes, if 5 years is not implemented, we will review it again, including the possibility that it (it will be returned to the state)," continued Arifin.
He said that the tough deal over management was detrimental to Indonesia. He also questioned why Shell was reluctant to release his participation rights from the Masela Block.
"What's wrong? If you don't want to, you don't have to, right?" Arifin continued.
Arifin added that Shell was not responsible after resigning from the Masela Block. "Inpex has seriousness but I don't know that Shell is not responsible," concluded Arifin.
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