Inpex's Indonesia Abadi LNG porject

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Inpex's Indonesia Abadi LNG porject

Unread post by escveritas » Wed Jun 05, 2019 3:09 am

INPEX Masela* 65%
Shell 35%

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Drillship for the Abadi LNG project

INPEX acquired a 100% interest in the Masela Block in November 1998 through an open bid conducted by the Indonesian government authorities and subsequently went about exploratory activities as the operator, discovering the Abadi Gas Field through the first exploratory well drilled in 2000. The Company subsequently drilled two appraisal wells in 2002 and four in 2007–2008, all of which confirmed the presence of gas and condensate reservoirs.

In December 2010, the authorities approved the initial plan of development (POD-1) deploying a floating LNG (FLNG) plant with an annual processing capacity of 2.5 million tons, and from November 2012 to November 2014, INPEX undertook SURF (subsea, umbilical, riser and flowline) and FLNG FEED work.

INPEX drilled three more appraisal wells in 2013 and 2014 with the aim of expanding the volume of recoverable reserves, confirming a greater volume of natural gas reserves that were certified by the authorities.

Having revised its concept selection studies to factor in this increased volume of reserves, INPEX decided it would be optimal to center development on a large-scale FLNG. The Company submitted a revised plan for the development based on an FLNG plant with an annual LNG processing capacity of 7.5 million tons to the authorities in September 2015. In April 2016, however, the Company received a notification from the authorities instructing it to re-propose a plan of development based on onshore LNG. The Company subsequently entered into constructive discussions with the authorities, including in regard to securing economic efficiencies, and conducted Pre-FEED work based on an onshore LNG development scheme with annual LNG production capacity of 9.5 million tons from March to October 2018. Currently, INPEX is in discussion with the authorities on the POD.

The authorities recognized the Abadi LNG Project as a National Strategic Project in June 2017. The project was also given Priority Infrastructure Project status in September 2017, continuing to enhance expectations for an acceleration in various licensing processes.

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Re: Inpex's Indonesia Abadi LNG porject

Unread post by escveritas » Wed Jun 05, 2019 3:11 am

Inpex Corporation of Japan was reported to have appointed Indonesian EPC company PT KBR Indonesia, PT Technip Engineering Indonesia and its affiliate firm PT Technip Indonesia to conduct Pre-Front End Engineering Design (Pre-FEED) for Abadi LNG project in Masela Block, Arafura Sea.

Inpex has to re-launch the Pre-FEED for the Abadi LNG project after the Indonesian government decided the LNG processing facilities of the project to be built onshore, instead of offshore (floating LNG).

Senior Specialist Media Relations of Inpex Corp Moch. Nunung Kurniawan was quoted by Katadata.co.id that the company has named the two companies – KBR and Technip – to carry out the pre-FEED.

He said the preliminary design of the onshore LNG plant will be conducted by PT KBR Indonesia, while the preliminary design of Floating Production Storage and Offloading (FPSO) will be conducted b Technip. They will immediately conduct the Pre-FEED.

The costs to conduct the Pre-FEED is estimated to reach US$23 million. The Pre-FEED is expected to last for three months.

The result of the Pre-FEED will be used by Inpex to submit the Plan of Development (PoD) of the Abadi Field, expected to be submitted in November this year.

INPEX said it will formulate a detailed revised plan of development (POD) contingent on the results of the Pre-FEED work and ongoing discussions with the Indonesian authorities to achieve a cost-efficient and economically competitive project.

Following government approval of the revised POD, a series of subsequent evaluations including front-end engineering and design (FEED) work will be carried out leading to a final investment decision (FID).

In September 2015 INPEX submitted a revised POD envisioning a larger 7.5 million tons per annum LNG processing capacity of a Floating LNG (FLNG) to the Indonesian government authorities. In April 2016, the authorities responded by instructing the company to re-propose the POD for the Abadi LNG Project based on an onshore LNG development scheme.

Following constructive discussions with the authorities that included agreeing to the need for an economically viable project, INPEX is now set to commence Pre-FEED work based on an onshore LNG development scheme with an annual LNG production capacity of 9.5 million tons.

Masela Block is estimated to have 18.47 trillion cubic feet of proved and probable gas reserves. The Abadi field project is one of the largest gas projects being developed in Indonesia. Inpex, along with its partner Shell, is expected to spend over US$5 billion to develop the field.

Initially, Inpex targeted to commence production of the Abadi field in 2018. However, it was then delayed to 2019 and now it is further delayed to 2022, after the Joko Widodo government instructed Inpex to build onshore LNG plants, instead of offshore Floating LNG (FLNG).

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Re: Inpex's Indonesia Abadi LNG porject

Unread post by escveritas » Wed Jun 05, 2019 3:12 am

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Energy and Mineral Resources Minister Ignasius Jonan has said Japan’s oil company Inpex Corp and the Upstream Oil and Gas Regulatory Task Force (SKK Migas) has agreed on the plan of development (PoD) of the gas-rich Masela Block in the Arafura Sea on Monday in Tokyo.

“Inpex and SKK Migas have agreed on the substantial matters of the Masela Block's development this afternoon in Tokyo. The discussion has been taking place for 18 years,” Jonan said in a statement received on Monday.

“The investment is between US$18 billion and $20 billion with a fair share between the government and the contractor.”

The agreement was concluded when Jonan met Inpex Corp. CEO Takayuki Ueda in Tokyo on Monday. It was the second meeting after they met on May 16 also in Tokyo.

During the May 16 meeting, both parties agreed on the final structure of the PoD. On Monday they discussed the details of the plan.

According to the press statement, both parties agreed to have a win-win solution with a production sharing scheme, where the government will get at least 50 percent of shares.

The agreement was marked by the signing of the meeting minutes between SKK Migas chairman Dwi Soetjipto and Takayuki of Inpex Corp.

“The final signing of the agreement between the government and Inpex Corp will be conducted during the G20 Summit in Japan soon,” Jonan said. The 2019 G20 Summit will be held on June 28 and 29 in Osaka.

The cost of the agreed project development with an onshore LNG plant is around $6 to $7 per barrel of oil equivalent (boe), 20 percent lower than the previous offshore LNG plant at $8 to $9 per boe, according to an SKK Migas statement.

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