Thursday, 17 October 2019

Expert Urges Gov't to Make Decision Related to Masela Block  

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  • Pertamina Upstream Energi's (PHE) Offshore North West Java (ONWJ) block. ANTARA/Fanny Octavianus

    Pertamina Upstream Energi's (PHE) Offshore North West Java (ONWJ) block. ANTARA/Fanny Octavianus

    TEMPO.CO, Jakarta -  Senior oil and gas practitioner John Karamoy urged the government not to delay its decision relatd to the development of Masela Block. John explained that if the government continue to delay, it may be brought to international arbitration.

    "Its best that the government do not cause any new problem," John said in Jakarta on Wednesday, January 13, 2016.

    Previously, the government promised that the decision on Masela Block will be made on early January 2016. The plan is a follow-up to a statement issued by independent consultant Poten & Partners, which stated that the best method to develop the Masela Block would be by constructing a floating liquid natural gas (FLNG) facility.

    President Joko "Jokowi" Widodo promised to immediately summon Inpex Masela Ltd, the company that operates Masela Block, but no action has been taken so far.

    The Special Taskforce for Oil and Gas Upstream Activities (SKK Migas) confirmed that there is a clause in the sharing contract that allows Inpex to file a lawsuit against the government to international arbitration.  However, Elan Biantoro, Head of Public Relations of the SKK Migas said that the provision cannot be used as a reason to file a lawsuit.

    ROBBY IRFANY