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Indonesian president to discuss development plans of Masela gas field with Japan, Dutch investors

Xinhua, February 2, 2016 Adjust font size:

Indonesian President Joko Widodo was scheduled to meet senior officials of Japan and the Netherlands-based oil and gas firms, Inpex and Shell, related to their biddings to develop and exploit gas field in the eastern region's Masela bloc, a minister said here on Tuesday.

"Within one or two days, a meeting would be held between the president and officials of those firms. The president was fully understand the apparent risk faced by those investors related to cost recovery on their projects carried out in the bloc," Energy and Mineral Resources Minister Sudirman Said said here.

Cost recovery was government's compensations over the cost they have spent to finance constrictions of facilities supporting their operations.

Besides inviting them for the discussions, the president would also want to hear those investors' plans and methods to develop the bloc, the minister said.

The planned discussion with the two investors was following results of cabinet meeting to discuss the Masela bloc located in Arafura Sea, Maluku and further operation of the Japanese and the Dutch investors.

Masela bloc that sits in area of about 4,290 kilometer square has an estimated gas deposit of 10 trillion cubic feet (TCF).

Indonesian government was expected to deliver its decision related on Plan of Development (PoD) on Masela bloc submitted by the investors in April, or lagged by seven months from the target initially set in October last year.

Options to develop the bloc consisted of onshore and offshore refinery facilities that require 19.8 billion U.S. dollars and 14.3 U.S. dollars respectively. For the onshore option, Indonesia has prepared Tanimbar island to host the operation.

Sudirman said earlier that government would issue its final decision related to operation of Masela bloc in late 2018 or early 2019. Enditem