Page 10 - AsianOil Week 36 2022

AsianOil SOUTHEAST ASIA AsianOil

Indonesia provides updates

on energy projects

PROJECTS & INDONESIAN Minister of Investment Bahlil The Masela project was approved in 2019 and
COMPANIES Lahadalia told Parliament that the country may includes an LNG plant with a capacity of 9.5mn
form a consortium to take over Shell’s 35% stake tonnes per year (tpy), which is due to enter ser-
in the Masela gas project, also known as Abadi vice in 2027. Shell has declined to publicly com-
LNG. ment on its position on its stake in the project.
The super-major wants to exit the $20bn pro- Separately, a recent presentation by the direc-
ject, according to Bahlil, and a consortium com- tor-general of oil and gas at Indonesia’s Ministry
prising state-owned Pertamina, the Indonesia of Energy and Mineral Resources, Tutuka Ari-
Investment Authority (INA) sovereign wealth adji, showed that Harbour Energy is anticipated
fund and other companies could take its share. to start production from its Andaman II block
“The president has ordered me and the state- offshore the country in 2028.
owned enterprises minister to prioritise the Harbour is expected to submit a plan of
Masela gas project,” Bahlil said. development in 2025 after further appraisal
Also this week, Pertamina’s CEO, Nicke and exploration drilling in 2023 to gather more
Widyawati, told a separate parliamentary meet- data on its acreage, according to Tutuka. The
ing that the company had expressed its interest in project could produce 155-259mn cubic feet
participating in Masela to majority shareholder (4.4-7.3mn cubic metres) per day of gas, the
Inpex, which holds a 65% stake in the project. presentation showed.
“The point is, we are interested because this This follows Harbour’s success with the Tim-
is a giant discovery which could increase gas pan-1 exploration well in the Andaman II block.
reserves and production,” Nicke told lawmak- However, the company has cautioned that per-
ers. She added that Pertamina could soon launch meability was on the lower end of its expecta-
due diligence, but warned that any decision on tions at Timpan-1. As a result, it will be seeking
an investment would depend on the commercial a better incentive package if it is to invest further
feasibility of the project. in the region.™

EAST ASIA

Mitsui, Shell to explore CCS opportunities

ENERGY MITSUI & Co. and Shell have struck a deal to “CCS will play an important role in the region
TRANSITION explore the technical and commercial feasibility to simultaneously achieve continued economic
of carbon capture and storage (CCS) in Asia-Pa- growth and reduced emissions,” added Mitsui
cific, including in Japan. The agreement comes as Energy Business Unit 1’s general manager of sus-
both companies explore options for decarbonis- tainable energy development, Yasuchika Maruy-
ing, with CCS increasingly seen as a key part of ama. “Mitsui is trying to develop approximately
the process for energy producers. 15mn tonnes per annum of CCS capacity by
According to the announcement, the com- 2035. By developing CCS opportunities, Mitsui
panies will explore the conditions and policies aims to continue contributing to an environ-
required to develop CCS, as well as options for mentally sustainable society,” Maruyama said.
owning and charting ships to carry liquid carbon Shell already operates the Quest CCS project
dioxide (CO2). in Canada, which is used to capture emissions
“Increasing the global deployment of CCS from the Athabasca Oil Sands Project. Last year,
is one element of Shell’s transition to becoming the super-major unveiled plans to build a second
a net-zero emissions energy business by 2050,” CCS project in Alberta to serve its Scotford refin-
stated Shell’s vice president of carbon capture ery and chemicals complex. Since then, it has
and storage, Syrie Crouch. “Working with com- also announced its involvement in other CCS
panies like Mitsui, we want to help unlock the proposals, including in the Asia-Pacific region.
potential of CCS in Asia-Pacific, including Japan. Shell and Mitsui are also shareholders in the
This agreement is another step in that journey G-10-AP permit, which was recently awarded
and supports our ambition of having access to to a consortium led by Woodside Energy by
at least 25mn tonnes a year of CCS capacity by the Australian government to pursue offshore
2035,” she added. CCS opportunities.™

P10 www. NEWSBASE .com Week 36 09•September•2022