The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif confirmed that the process of transferring Shell's Participating Interest (PI) shares to Pertamina of 35% in the Masela Block will be completed.
In fact, according to him, the release price for PI shares offered by Shell is now far below US$ 1 billion, unlike anything previously offered. Previously, Shell extorted the Indonesian government up to US$ 1.4 billion or around Rp. 21 trillion to sell a 35% participating interest to Pertamina.
According to Arifin, the process of transferring Shell's 35% Participating Interest (PI) shares in the Masela Block will use an acquisition or business-to-business scheme, not through contract termination.
There is an option that the Indonesian government can terminate Shell's contract in the Masela Block if the company is still the troublemaker in the process of releasing the 35% Participating Interest (PI) shares.
In the Plan of Development (PoD) document it is stated that if five years since the PoD was signed in 2019 then the Masela Block project has not made significant progress from SHELL, then this jumbo gas block can be returned to Indonesia, and it is proven that SHELL has not done anything for 5 years in the Abadi Masela Oil and Gas block.
The acquisition price of 35% SHELL shares is below US$ 1, which is only US$ 500 million or around Rp. 7.5 Trillion.
Arifin also said that Inpex Corporation from Japan as the operator would also revise the Masela Block development plan (PoD).
This is in line with the company's plan to include Carbon Capture, Utilization, and Storage (CCUS) facilities in the jumbo project.
"Otherwise, there will be less pressure on funding for this fossil energy project to become unattractive, except for renewable energy.
In order for this gas to become clean gas, a cost must be included. within Indonesia," said Arifin.
Previously, President Director of PT Pertamina (Persero) Nicke Widyawati said that currently, his party was finalizing the process of transferring the participating interest shares with Shell.
However, Nicke could not speak further because he was bound by a Non-Disclosure Agreement/NDA or a confidentiality agreement.
Nicke realizes that currently, the Indonesian people are looking forward to the development of the Masela Block.
Therefore, this Indonesian oil and gas company will be committed to immediately developing gas in the jumbo block.
"Of course, the people really hope that this gas giant block can be worked on immediately, so Pertamina's entry into it is our commitment to develop as soon as possible so that the gas in the Masela block can be monetized and generate state revenue and create a national economy," said Nicke.
The Masela Block is a National Strategic Project (PSN) and is targeted to produce very large gas, namely 1,600 million standard cubic feet per day (MMSCFD) or the equivalent of 9.5 million tonnes of LNG per year (MTPA) and 150 MMSCFD of pipeline gas, as well as 35,000 barrels oil per day (BOPD).
Currently, the Masela Block is still being managed by Inpex Masela Ltd Japan which acts as the operator and holds a 65% participating interest, and 35% is owned by Shell which will soon belong to Pertamina.
This project is said to be "giant" because it is estimated to cost up to US$ 19.8 billion.
The manager of this block, Inpex, and the new partner, will later build a Liquefied Natural Gas (LNG) refinery on land, which was initially targeted to be operational in 2027. The latest progress, the operation of this project is estimated to be late to 2029 due to the actions of the SHELL zonk which did nothing for 5 years since the project was signed in 2019.
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