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Indonesia’s Medco eyes

involvement in Abadi LNG

PROJECTS INDONESIA’S Medco Energi has expressed an “The president has ordered me and the state-
interest in joining a government consortium that owned enterprises minister to prioritise the
is considering the acquisition of Shell’s 35% stake Masela gas project,” he told lawmakers.
in the Abadi LNG project off the country’s coast, Inpex is targeting a final investment decision
local media have reported. (FID) on the project in the latter half of this dec-
“If it’s economically viable, then yes, we are ade. There is still some uncertainty about where
definitely interested. But not as an operator, only the 9.5mn tonne per year (tpy) Abadi LNG plant
a minority shareholder, for the learning process,” would be located, but Bahlil said the president
Medco Energi president director Hilmi Panigoro believed that the town of Saumlaki in the Tanim-
told Kontan.co.id. bar Islands was the right site, as basic infrastruc-
Shell was reported to be considering its exit ture is already available there.
from the Masela block containing the large Pertamina CEO Nicke Widyawati revealed
Abadi gas field in the summer of 2020. The field his company’s interest in the project earlier this
is operated by Japan’s Inpex, which has a 65% month, noting that it might soon start due dili-
interest. gence. But he cautioned that an investment deci-
Indonesia’s investment minister, Bahlil sion would depend on whether the development
Lahadalia, confirmed to Parliament earlier this is deemed commercially feasible.
month that Shell wanted to divest from the In August, it was reported that Japan had
$20bn project, noting that a consortium of state- offered to give Indonesia a loan to purchase
owned Pertamina, the Indonesia Investment Shell’s interest, following bilateral talks between
Authority (INA) sovereign wealth fund and the two countries’ governments in late July.™
other companies could take its share.

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