, pub-9591068673925608, DIRECT, f08c47fec0942fa0 Government Reviewing Masela Block Profit Sharing - MEDIA MONITORING OIL AND GAS -->


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Thursday, August 6, 2020

Government Reviewing Masela Block Profit Sharing

The government is considering changing the production share of gas or split in the management of the Masela Block. It seems that the plan is to attract investors to replace Royal Dutch Shell (Shell), which plans to sell the 35% participating interest in the Abadi Gas Field. 

    Referring to the agreement in the head of agreement (HoA) in 2019, the government and lnpex Corporation as the controlling shareholders of the Masela Block agreed to split the gas distribution by 50% (government) and 50% (lnpex and consortium).
Dwi Soetjipto

Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Dwi Soetjipto, assessed that at the time of the continuation of the Shell divestment, his party also saw potential or room for split changes. "We also found points or potentials for this economic project to be in a reasonable government split. We will continue to discuss it," Dwi said.

However, he is still reluctant to detail the objectives of the split change and the details of the changes being considered, so it is not yet known whether this profit sharing will increase the government's portion or even increase the INPEX portion. Dwi only said that Masela's liquefied natural gas (LNG) product enthusiasts had reached 50%.

"PLN has expressed an interest of at least 2 to 3 million tons per year (MTPA). From abroad, there are Japan, China, and Taiwan," said Dwi.

With regard to Shell's plan to leave, the Ministry of Energy and Mineral Resources (ESDM) noted that 32 companies are interested in replacing Shell.

Investor interest

Acting Director-General of Oil and Gas, Ego Syahrial confirmed that Shell had conducted open data to see the potential development of the Masela Block.

"It's true that Shell is in the process of opening this data. There are 32 candidates who are currently in the process of opening this data," said Ego Syahrial.

the Masela Block

Even the Ministry of Energy and Mineral Resources has approved foreign companies to see the block data. However, the government does not want to disclose the names of 32 companies interested in investing in the Masela Block. One thing is for sure, if Shell does leave, the government insists the Masela Block project will continue.

Besides investors, the Masela project is still hampered by land problems. Maluku Governor Murad Ismail promised to be ready to facilitate the land acquisition. Together with the Tanimbar Islands Regency Government and Southwest Maluku, the land acquisition of the Masela Block will be completed through adat and deliberation processes.

"We will solve the land problem as well as possible since it has been discussed that many people have controlled the land," he said.

Therefore, the Maluku Provincial Government is also waiting for the decision and the readiness of lnpex to acquire some land for LNG development.

"We'll just wait. It is impossible to solve the land problem if there is no encouragement from lnpex," he said.

Dwi Soetjipto added land acquisition will begin if the Environmental Impact Assessment (EIA) has been completed.

Kontan, Page-12, Thursday, August 6, 2020

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