China to Japan Eyes Production of Masela Block Gas, Says SKK Migas Boss

2023-07-10 17:53:32

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Head of SKK Migas, Dwi Soetjipto revealed, had received Letters of Intent (LOI) from several parties interested in purchasing liquefied natural gas (LNG) supplies from the Masela Block. Photo/Doc

JAKARTA – Head SKK Migas Dwi Soetjipto revealed, had received Letters of Intent (LOI) from several parties interested in purchasing liquefied natural gas (LNG) supplies from Block Masela . According to him, this is because LNG has recently become an energy commodity that is on the rise.

“We’ll see what it’s like in Masela, the capacity is 9.5 million tons per year, but the current demand is 20 million tons which states that they are interested in taking the Abadi Masela LNG. So the term is for them to send a Letter of Interest,” explained Dwi Soetjipto when met at the Office Ministry of Energy and Mineral Resources, Jakarta, Monday (10/7/2023).

continued Dwi said that some of the enthusiasts came from within and outside the country. “(From) Indonesia there is at least a minimum of 3 million, PLN 2 million, Pertamina 1 million, then from Japan, China ,” he continued.

As previously reported, Dwi ensured that the price for taking over the 35% participating interest (PI) for the Masela Block from Shell to PT Pertamina (Persero) was under USD 1 billion or around IDR 15.1 trillion (exchange rate of IDR 15,152 per US dollar).

“(Under USD 1 billion?) Yes below,” he explained when met at the Office of the Ministry of Energy and Mineral Resources, Jakarta, last Friday (7/7/2023).

Dwi explained that the government also reminded the Dutch-based oil and gas company to have many businesses in Indonesia. Therefore the government wants Shell to accelerate the course of this project.

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