Petronas interested to join Abadi LNG project: Indonesian regulator

INDONESIA’S upstream oil and gas regulator said on Wednesday (Nov 16) that state oil and gas company Petronas has expressed interest to participate in Indonesia’s takeover of Shell’s stake in the Abadi liquefied natural gas (LNG) project.

The Indonesian government said a consortium of state-owned energy firm Pertamina, the Indonesia Investment Authority (INA) – the country’s sovereign wealth fund – and other companies could take Shell’s 35 per cent stake in the Abadi liquefied petroleum gas project, after the energy company signalled its intention to withdraw.

“Petronas is also interested to join, and if possible, work together with Pertamina in terms of replacing Shell,” chairman of regulator SKK Migas, Dwi Soetjipto, said in a parliamentary hearing.

Petronas said it could not immediately comment on the matter.

Japanese energy company Inpex controls 65 per cent of the project, also known as the Masela gas project, in Indonesia’s south-east Maluku islands.

Pertamina has conducted a data room study, and is due to submit a non-binding offer to Inpex and Shell this month, Soetjipto added.

SEE ALSO

Petronas to hunt for hydrocarbons off Malaysia with TotalEnergies, Shell

Japan asks Malaysia’s Petronas to help customers after LNG disruption

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Inpex is expected to submit a revised development plan on the project to include a carbon capture installation in their investment in December.

The project had previously been expected to cost around US$20 billion.

“It is hoped that, in line with (Inpex’s new plan), the new partners could also have been decided. Because it is impossible for Inpex to revise without knowing who its new partner is,” Soetjipto said. REUTERS