, pub-9591068673925608, DIRECT, f08c47fec0942fa0 Inpex Starts Drilling on Masela Block in 2024 - MEDIA MONITORING OIL AND GAS -->


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Thursday, December 28, 2023

Inpex Starts Drilling on Masela Block in 2024

    The Ministry of Energy and Mineral Resources (ESDM) has approved further drilling at the Masela Block Abadi LNG project to begin next year after the second revision of the development plan was approved.

    The second revision of the development plan or Plan of Development (PoD) I of the Masela Block Abadi LNG project itself has been approved by the Minister of Energy and Mineral Resources, Arifin Tasrif.

    In addition to drilling plans, the ministry is targeting a final investment decision (FID) for projects with a current estimated value of around US$19.8 billion will also be completed next year.

    Several crucial points in the PoD include a commitment to commercial operations by the end of 2029, and initial plans to install exhaust gas capture facilities or Carbon Capture and Storage (CCS).

Drilling Girl

    In the new development proposal, SKK Migas reported that additional investment for CSS is estimated to be in the range of US$ 1 billion or equivalent to IDR 15.52 trillion at an exchange rate of IDR 15,520 per US dollar. For other investments in upstream oil and gas activities, there has not been much change.

    Masela Block Operator, Inpex Masela Ltd. currently negotiating with the Indonesian government regarding the need to re-amend the production sharing contract or PSC for the Masela Block Abadi LNG project.

    It is hoped that the contract amendment will make the economics of the national strategic project (PSN) more attractive at the time of Inpex's commitment to include CCS facilities in the development plan that was sent in April 2023. 

    Inpex targets development costs to be reduced optimally with an Internal Rate of Return (IRR) in the range of 10%.

    Inpex proposed that CCS installation and operation costs could be charged to the production-sharing contract that is currently being amended. The plan is that operating costs will be paid directly through the sale of gas and condensate from future field projects.

    The Masela Block development project will use a combined land and sea system to ensure that the investment value of the existing field development plan does not change much.

Drilling Girl

    Through this combination system, seabed drilling will be carried out at a depth of 600 meters, and the well depth will be 4,000 meters. The gas obtained will be processed in a floating building, namely floating production, storage, and offloading (FPSO) to be purified from other substances.

    After being purified at the FPSO, the gas will be channeled to the liquefied natural gas (LNG) refinery on land via the gas export pipeline (CEP) which is 175 kilometers away and through sea trenches. The Masela Block is one of the largest oil and gas field prospects in Indonesia. 

    Production is estimated to reach 1,600 million cubic feet per day (MMscfd) of gas or the equivalent of 9.5 million MTPA and 150 MMscfd of piped gas, as well as 35,000 barrels of condensate per day 4 (BCPD).

    The project, which was originally estimated to require investment costs of up to US$ 19.8 billion, is Inpex's second largest gas management asset, after the Ichthys LNG Project in Australia.

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