Indonesia may form a consortium to take over Shell's 35% stake in the Abadi (Masela) LNG project as the major intends to withdraw from the project.
Indonesia may form a consortium to take over Shell’s 35% stake in the Abadi (Masela) LNG project as the major intends to withdraw from the project.
Reuters cited the investment minister Bahlil Lahadalia as saying that Shell wanted to divest from the $20 billion project, so a consortium of state-run energy firm Pertamina, the Indonesia Investment Authority (INA) sovereign wealth fund and other companies could take its share.
“The [Indonesian] president has ordered me and the state-owned enterprises minister to prioritise the Masela gas project.”
According to the
Global LNG Database®, shareholders of the INPEX-operated Abadi LNG project (including Masela gas field development) project are INPEX Masela, Ltd. (INPEX) 65%, Shell Upstream Overseas Services (Shell) 35%.
However, Shell has tried to sell its stake in Abadi LNG and practically withdrawn from the project since July 2020.
The 9.5 MMT/Y LNG project was slated to commission in 2028.
Pertamina had expressed its interest to participate in the Masela project. "The point is we are interested because this is a giant discovery which could increase gas reserves and production."
The company said that it might soon launch due diligence but “any decision regarding investment would depend on the commercial feasibility of the project.”
Earlier, Indonesia’s President Joko Widodo had asked INPEX to start the Abadi LNG project soon. "We continue to push for (the LNG project) in Masela Block” and the government has encouraged investors to become the new partner for INPEX so that the project can be started.
Japan has reportedly offered Indonesia a loan to buy Shell’s stake in the project.
Follow Global LNG Info
