DIGIVESTASI - After more than 20 years of waiting, the giant LNG Abadi gas project in Masela Block has finally officially started. Head of SKK Migas Dwi Soetjipto in his remarks at the kick-off meeting of the Abadi LNG Project Management Team (PMT) held on Thursday (28/12), said this was a special day because it marked the start of a very large national strategic project. 

He said: "The investment in the Abadi Masela project is very large, reaching 20.9 billion USD, if compared to the equivalent of Rp 324 trillion, almost 3 times the investment value of the Jakarta-Bandung fast train". Thursday (December 28). The project is the first to include CCS-related costs in cost recovery, under the Production Sharing Contract (PSC) system that governs upstream oil and gas operations in Indonesia. 

The approval of the revised POD paves the way for INPEX and its partners to fully promote the Abadi LNG project as an environmentally friendly project to support the energy transition. Going forward, INPEX and its partners will continue its operations, including some on-site activities as well as preparations for FEED work.

The joint venture (INPEX, Pertamina and Petronas) will then implement the project with the aim of reaching a final investment decision (FID) and starting early stage production after completing the necessary preparatory steps, including marketing and financial activities. 
"This project will generate revenue for the government of USD 37.8 billion or equivalent to Rp 586 trillion," Dwi said.

The Abadi LNG project is also proof of Indonesia's commitment to increasing production while reducing emissions because the Abadi gas field also has the potential to store CO2 and even become a CCS center with a CO2 injection capacity of 71 to 80 million tons and a storage capacity of 71 to 80 million tons. 1.2 gigatons. 

"The CCS Center at the Abadi Masela Project adds to the list of CCS projects being built in the upstream oil and gas industry, and highlights the industry's alignment and contribution in reducing carbon emissions and helping the government achieve net zero emissions by 2060," Dwi said. 

Dwi emphasized the importance of this event in aligning our collective resolve to accelerate project completion against the ongoing target of Q4 2029. 

He said that if the Abadi Masela project is accelerated, it has the potential to accelerate the project's revenue to around $5 billion, while if it is delayed, the project's cost could increase by around USD. 1 billion per year beyond salary costs. 
"Today's launch ceremony is an important milestone and I ask the SKK Migas and Inpex Masela teams to continue to look for potential activities to accelerate the project. "If the Abadi Masela project can be completed faster, it will have a huge impact in the form of increased state revenue and additional gas supply to meet national needs," he claimed. 

"The progress of the Abadi LNG project is highly anticipated by the government and the people of Indonesia because it is one of the cornerstones to achieve the 2030 production target of 1 million barrels of oil per day (BOPD) and 12 billion cubic feet of gas per day (BSFCD)," Bi concluded. 

Please note, this project is a national strategic project. 
The project went ahead after the government, specifically the Ministry of Energy and Mineral Resources, approved a revised Plan of Development (POD) that included a Carbon Capture and Storage (CCS) component in the Modified POD. 
And for Inpex Masela, the company leading this mega project, is entitled to manage the largest portion, which is 65%. The Japanese company is working with Pertamina (20%) and Petronas (15%).