Abadi Gas Field Development Plan

he Abadi Gas Field is situated in the 3,221km² Masela block in the Arafura Sea, Indonesia. The field lies in water depths ranging 984ft-3,281ft. The field is estimated to contain ten trillion cubic feet of natural gas reserves. Energy and Mineral Resources Minister, Ignasius Jonan and CEO of Inpex Corporation, Takayuki Ueda agreed on the final plan of development (PoD) of the giant gas field Abadi Field project, located within the Masela Block in the Arafura Sea, Maluku.

The Abadi gas field features excellent reservoir productivity and has one of the world’s largest reserves, raising expectations of efficient development and stable LNG production operations over the long-term. The Ministry of Energy and Mineral Resources (MEMR) said in a statement that the cost to develop the Abadi Field is estimated to reach US$20 billion. As part of the deal, both parties reached a win-win solution in term of profit sharing, in which Indonesia will get profit sharing of 50% and the other half is for Inpex. The agreement is a small move forward for the project, which Inpex had to redesign as an onshore plant after the Indonesian government rejected its proposal for a floating-LNG facility in 2016.

Developing the Abadi field in the Masela block and the accompanying LNG export project will cost $18 billion to $20 billion, the largest single investment activity in Indonesia, the nation’s energy ministry said in a statement. The project, which will also supply 150 million cubic feet of gas by pipeline, is targeted to come onstream in 2027. Indonesia gave Inpex initial approval for a 27-year contract extension to 2055.

Floating LNG facility The floating LNG facility will feature the integration of proven technologies such as FPSO, baseload onshore LNG plants and LNG carriers. It will include an LNG loading plant, an LNG storage tank and a loading facility similar to that available on a conventional FPSO. The floating LNG concept was chosen for the field because it reduces the environmental impact of constructing an onshore facility in terms of the land, harbour and infrastructure facilities required. The MetOcean conditions at the field also favoured the design and operation of the floating LNG facility. In addition, the concept is expected to reduce the costs incurred and the project lead time. The project partners are expected to invest $19.6bn in the facility, which will be installed about 170km south-west of the city of Saumiaki.

Production

The feed gas produced will be collected through the subsea drilling centres and transported to the floating LNG through flexible production risers. The gas will be processed and liquefied on the floating LNG. The LNG and condensate will be stored in the floating LNG, and offloaded at regular intervals through LNG carriers. Details of project :

Project Abadi LNG Project
Extension of the Revised PSC Until November 15, 2055 (currently under application)
Contract area Approximately 2,503 square kilometers
Water depth range 400~800 meters
Block location 150 kilometers offshore Saumlaki in Maluku Province
Capacity Total output of natural gas (LNG equivalent)10.5 million tons per year including Approximately 9.5 million tons of LNG per year – Local gas supply via pipeline Up to approximately 35,000 barrels of condensate per day
Participating Interest – INPEX (INPEX Masela, Ltd.*): 65% (Operator) – Shell(Shell Upstream Overseas Ltd.): 35% *(INPEX holds 51.93% of shares in INPEX Masela, Ltd.)
Others The Project was listed by the Indonesian government as a national strategic project in June 2017 and as a priority infrastructure project in September 2017.

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