Jakarta – PT Pertamina (Persero) has agreed to divest 15% of the participating interest (PI) in the Masela Block LNG Project, located in the Tanimbar Islands Regency to Petronas. Thus, the composition of the Masela Block PI holder will be Pertamina by 20%, Petronas 15% and the remaining Inpex 65%.
Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Dwi Soetjipto, revealed that according to the initial agreement, Pertamina would release 15% of the 35% PI taken over from Shell to Petronas.
Currently, it is only a matter of signing the Sales and Purchase Agreement (SPA) which is guaranteed to be done in July. Furthermore, according to him, the government has directly intervened to encourage Shell to lock in an agreement with Pertamina immediately. This is because the Masela project is very important for national energy security in the future.
“Masela gas is expected to be one of the main suppliers of domestic gas needs for more than 10-20 years since it starts production later. We hope Shell can accelerate this project so that it can be dealt with immediately, the government approaches Shell. The country is very interested in maintaining energy security, and Abadi Masela is expected to be right,” said Soetjipto.
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif emphasised that the agreement between Pertamina and Shell should not be delayed anymore. July is the last time for both parties to finalise all administrative matters to transfer PIs.
Director General of Oil and Gas of the Ministry of Energy and Mineral Resources (ESDM), Tutuka Ariadji, added that the Masela Block is one of the National Strategic Projects (PSN) whose participation rights are held by Inpex and Shell. However, Shell later expressed a desire to relinquish its participation rights in Abadi Field, so a replacement must be found.
Before withdrawing from the Masela Block, Shell held a 35% participating interest (PI). Inpex held the remaining 65 per cent. He said a number of oil and gas companies had expressed interest in replacing Shell in the block, including PT Pertamina. (Hartatik)