Indonesia's giant Masela LNG project enters a new era - ANTARA News Jawa Timur

Tanimbar Islands, Maluku (ANTARA) -

It has been nearly three decades since the Masela Block cooperation contract was signed on November 16, 1998, by Inpex, a major Japanese oil and gas exploration and production company.

Following the signing of the contract, gas reserves were discovered in the Abadi Field in 2000 in the Masela Block, located in the Arafura Sea.

The planned production capacity for liquefied natural gas (LNG) is 9.5 million tons per year, plus up to 35,000 barrels per day of condensate and approximately 150 million cubic feet per day of natural gas. The Masela project is therefore expected to play a crucial role in strengthening Indonesia's energy security.

Despite its potential, the project has experienced numerous setbacks.

The long journey

In 2010, the government required the project to switch from a floating LNG facility to an onshore LNG facility.

The change resulted in significant delays and revisions to the Masela Block's Plan of Development (POD).

Besides revising the Plan of Development (POD), the project faced another setback in 2023 when Shell Upstream Overseas Services Limited, which held a 35 percent participating stake in the Masela Block, withdrew from the project.

The project had originally been scheduled to begin operations in 2027.

The then-president Joko Widodo said that Shell's withdrawal from the Masela Block was due to low gas prices.

Shell's stake was subsequently acquired by Pertamina (20 percent) and Petronas (15 percent). Inpex retained a 65 percent controlling stake.

In the same year, Inpex submitted a revised POD to include a Carbon Capture and Storage (CCS) component. This was approved by the government in December 2023, making Abadi one of the first LNG projects in the world with a cost-recovery scheme for CCS operating alongside LNG production.

The prolonged development process prompted the Indonesian government to take a firmer stance.

In early 2025, Energy and Mineral Resources Minister Bahlil Lahadalia issued a formal warning letter to Inpex over the management of the Masela Block.

He also warned that a second letter could follow, along with the possible termination of the company's contract for the block.

As part of its commitment to developing the Masela Block, Inpex announced that the front-end engineering and design (FEED) phase for the Abadi LNG project in the Masela Block in Tanimbar, Maluku, officially begin in mid-2025.

The FEED work is divided into four main packages: OLNG; floating production storage and offloading (FPSO); subsea umbilicals, risers, and flowlines (SURF); and gas export pipeline (GEP).

In February 2026, the Indonesian government approved an Environmental Impact Assessment (AMDAL) covering core project elements, from offshore drilling to onshore liquefaction facilities.

Following approval of the AMDAL, the Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resourcesannounced that land acquisition had been completed in the Tanimbar Islands, Maluku, completed in June 2026.

One year after the government issued the warning letter, the Masela Block has entered a new chapter. President Prabowo Subianto officiated the groundbreaking for the Abadi Masela LNG National Strategic Project online from the Merdeka Palace, Jakarta, on July 26, 2026.

A new chapter

While President Prabowo officiated the groundbreaking ceremony for the Abadi Masela LNG National Strategic Project virtually, Energy and Mineral Resources Minister Bahlil Lahadalia was on site in the Tanimbar Islands, Maluku.

The hybrid ceremony drew enthusiastic support from communities near the project site, particularly in Lermatang Village.

Women dressed in white kebaya and black woven fabrics typical of the Tanimbar Islands, Maluku, were seen gathered near the ceremony venue.

They gathered to sing a welcoming song for President Prabowo, even though he attended virtually.

The headdresses, or Somalai, made from bird-of-paradise feathers, swayed gracefully as they were caressed by the East Monsoon wind that typically blows mid-year. They created a striking spectacle despite the scorching midday sun on Lermatang.

Just as Somalai symbolizes the majesty, beauty, and honor of women, the women who welcomed the officials wore warm smiles that reflected their joy. They warmly welcomed officials who had traveled to one of Indonesia's remote outer islands.

Local residents also welcomed the inauguration of the Masela project with great enthusiasm. Children wearing jerseys of countries competing in the 2026 FIFA World Cup ran across a vast open field that was once overgrown with scrubland.

Beni Batlolone, a resident of Lermatang Village, said the area has undergone noticeable changes since work on the Masela project gained momentum. The village has become livelier, he said, adding that the project operator now conducts monthly meetings with the local community.

According to Beni, the discussions include updates on Inpex's commitment to recruiting local residents once the project enters the operational phase.

Beni also expressed pride that his village had been chosen to host the Abadi Masela LNG National Strategic Project.

"We are proud of the project. We hope we can participate in the project," he continued.

Minister Lahadalia said that the Masela project will prioritize local labor. The project is estimated to employ around 12,000 direct workers during construction, and 800 to 1,000 workers during the operational phase.

He said the demand for skilled workers will be prioritized in the Tanimbar Islands District and Southwest Maluku District.

If local demand cannot be met, recruitment will be expanded to other parts of Indonesia before seeking workers from abroad.

With its massive investment, job creation, and downstream industrial development, the government believes the Abadi Masela LNG Project will serve as a catalyst for new economic growth in eastern Indonesia.

Dilarang keras mengambil konten, melakukan crawling atau pengindeksan otomatis untuk AI di situs web ini tanpa izin tertulis dari Kantor Berita ANTARA.

← → Top