Govt Wants Independent Consultants Help for Masela Block

TEMPO.CO, Jakarta - The Ministry of Energy and Mineral Resources has yet to decide the fate of the Masela block development, a block they promised to be completed and ready to operate by October 10 this year. Instead, the government is seeking for additional time as they want to bring independent consultants into the project.

"Energy Minister Sudirman Said has asked the SKK Migas and the Oil and Gas Directorate General to seek independent consultants' help for Masela," Oil and Gas director general IGN Wiratmaja Puja said on Wednesday, October 7.

According to Wiratmaja, the involvement of independent consultants will provide the government with the right input about the study and evaluation of Masela's revised development sent by SKK Migas on September 10.

"We want independent consultants with a world class reputation, who can provide professional recommendations," he said.

The proposed change is to increase Masela's LNG plant capacity from 2.5 million to 7.5 million metric tons per year. The refinery will also produce 1,200 mmcfd of LNG and 20,460 bpd of condensates.

The revision is based on Inpex's discovery during the drilling stage, which shows that Masela's proved reserves had increased to 10.73 trillion cubic feet. Discussion related to these changes in the development plan has been conducted since September 2014 by SKK Migas.

If approved, the initial design of the FEED (Front End Engineering Design) will be constructed by Inpex immediately, and then the company can continue to the final investment decision, which is targeted for completion in 2018. The production, according to the SKK Migas chied Amien Sunaryadi, will start in 2024.

Amien admitted that the revisions have inflated investments to US$14 billion, more than twice of the initial estimate of about US $ 7 billion. However, the revisions will make the floating storage facility to be more efficient and cost-effective.

AYU PRIMA SANDI | ROBBY IRFANI