Energy companies from Asean have been verified as Abadi’s buyers.
The state-owned Pertamina of Indonesia and Petronas of Malaysia have agreed to purchase the UK supermajor Shell’s sole partner holding in Inpex’s Masela production sharing contract, which is located offshore and contains the enormous Abadi gas field, for up to $650 million.
The plans to use Abadi as a 9.5 million tonnes per year onshore liquefied natural gas project, which would incorporate a carbon capture and storage facility, are now being reviewed by the Indonesian government by Japanese operator Inpex.
On Tuesday, Shell announced that its subsidiary Shell Upstream Overseas Services (SUOS) has reached an agreement to sell its 35% participation stake in the Masela PSC for a base value of $325 million cash.
The agreement, which will go into effect on January 1, 2023, also involves a $325 million contingent payment that will be made when the Abadi gas project’s final investment decision is made.
Pertamina Hulu Energi (PHE) is obtaining a 20% share in the Masela PSC, which is located in the remote western Arafura Sea in eastern Indonesia. Petronas has announced that it is acquiring a 15% interest in the project.
The acquisition is the result of a joint bidding collaboration between Petronas Masela and its partner, PHE, where both entities will acquire Shell’s entire 35% participating interest in the Masela PSC,” said Petronas after the two newcomers had each signed their individual sale and purchase agreements (SPA) with Shell.
“This acquisition marks a significant milestone in Petronas’ portfolio expansion in Indonesia,” said the company’s chief executive Tengku Muhammad Taufik.