Steady Annexing Shell Shares In Masela, Minister Of Energy And Mineral Resources: Half Of The Past As A Sign Of So

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Maria Trisnawati/VOI)

JAKARTA - The process of taking over the Masela Block is increasingly finding a bright spot. The Minister of Energy and Mineral Resources (ESDM) confirmed that PT Pertamina (Persero) will take over Shell Upstream Overseas Ltd's participation rights or participation interest (PI) by 35 percent in Blok Masela.

Arifin ensured that the process would be completed by the end of June 2023 and Pertamina would pay half of the agreed value as a sign of completion.

"The target is to take partcipating interest and it will be completed by the end of this month. That's half of it used to be finished," said Arifin, who was met by the media at the Ministry of Energy and Mineral Resources Building, Friday, June 16.

Regarding the price of the agreement between Pertamina and Shell, Arifin was reluctant to mention the exact figure.

However, he ensured that the figure was in accordance with what Pertamina had hoped for.

"If you want to know the value, wait for the end of the month. But it is included in the number that is expected by the party who takes over, namely Pertamina," continued Arifin. Furthermore, he added that the transfer of management process would not be delayed beyond June and would be on target.

Arifin said there would be consequences waiting if this process did not go according to the agreed time.

The reason is, the resignation of this management will have an impact on the delay in production and utilization of gas from the Abadi Masela Field.

"The consequence is that we have a project so we step back, gas production will also be delayed. If there is no certainty, the government will take a position," said Arifin.

Later, he said, Pertamina would conduct a consortium with a giant oil and gas company from Malaysia, Petroliam Nasional Berhad or Petronas.

"Right now, the portion other than Shell is advanced by Pertamina and Petronas, yes. But in front of Pertamina," added Arifin.

Previously, in a working meeting with Commission VII on Tuesday, June 13, Arifin detailed the progress status of the project negotiations, including the completion of several aspects such as technical, environmental and commercial including original Work Program & Budget (WP&B) approval in 2023 3 for the implementation of the 2023 project, for the implementation of non-forest land acquisition projects, marketing activities (marketing activities), and Amdal studies.

He continued, there are several things that still have to be done this year related to the LAPAgan Abadi Masela project, namely the FEED (OLNG, FPSO, SURF, and GEP) tenders whose current status is preparation and waiting for INPEX HQ's efficacy regarding the clarity of investment and development plans.

Furthermore, the revision of 2 POD-1 where SKK Migas and INPEX have agreed to include carbon capture storage (CCS) within a revised scope of 2 POD-1.

"The thing that needs to be done so that the Masela Abadi apat project runs, among others, is the revision of the two Masela field PODs by including the carbon capture program, with an additional investment of 1.1-1.4 billion US Dollars," explained Arifin.