Offshore staff
LONDON — Shell Upstream Overseas Services has agreed to sell its 35% stake in the Masela production sharing contract (PSC) offshore Indonesia to PT Pertamina Hulu Energi and Petronas Masela.
Base consideration is $325 million in cash with a further $325 million to be paid potentially when the partners take FID on the Abadi gas project.
Shell, which entered the PSC in 2011, aims to complete the transaction in the current quarter, subject to regulatory approval from Indonesia’s Ministry of Energy and Mineral Resources.
INPEX Masela operates the PSC with a 65% interest. The Masela Block is 150 km offshore Saumlaki in the Maluku province. The company submitted a revised plan of development in April to the Indonesian authorities that included a carbon capture and storage proposal to neutralize all CO2 produced with Abadi’s gas.
Following Shell’s decision, INPEX announced it had entered a memorandum of understanding with Pertamina to collaborate on a wide range of issues, with a focus on the Abadi LNG project’s value chain. These include jointly pursuing offtake and transportation of LNG and other products as well as production of hydrogen and ammonia.
Upon completion of the transfer of Shell’s interest to the new partners, INPEX said it would resume project activities, including onsite preparation activities and preparations for FID on Abadi, which could produce 9.5 MMt/year of LNG, equivalent to more than 10% of Japan’s annual imports.
07.25.2023
