Shell Asks to Accelerate Development at Indonesia’s Masela Block

By webadmin on 07:07 pm Jun 07, 2012
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Anita Rachman

Coordinating Minister for the Economy Hatta Rajasa said on Thursday that Royal Dutch Shell wants to accelerate its development of the Masela gas block in the Timor Sea by effectively doubling the construction schedule of its purposed facilities.

“Shell is asking us to accelerate the plan of development because they feel it is too slow. [They] have asked if they can increase the capacity of its floating LNG facility,” Hatta said after a meeting with President Susilo Bambang Yudhoyono, Shell Chief Executive Officer Peter Voser and Shell Indonesia officials at the president’s office in Jakarta on Thursday.

Hatta said that Shell’s purposed floating plant, which the company had originally hoped would produce 2.5 million tons of gas per day, will instead be able to produce 6 million tons per day by linking the first and second phases of the project.

The construction of Shell’s Floating Storage and Receiving Terminal (FSRT) for extraction and storage of LNG will commence next year, with expected completion in 2019, according to Hatta.

The minister also said that Shell’s hope of producing 6 million tons of LNG will ultimately be beneficial to Indonesia, as it will mean more energy resources for the country.

“In building up infrastructure, Shell also wants to supply our domestic market. In building logistics, it also wants to build gas station specifically for motorcycles,” he said.  Shell holds a 30 percent stake in Masela bloc with Japanese oil and gas company Inpex holding 60 percent and the remaining 10 percent in the hands of Energi Mega Persada. 

Speaking to the press after the meeting, Shell CEO Voser said Indonesia was an important country for Royal Dutch Shell, and said the company would continue to explore the potential of cooperation between the two countries in the energy sector.

“Indonesia has had good market development in Asia, and it plays an important role in Shell’s long-term global strategy,” Voser said. “Therefore, we hope we can continue to cooperate with Indonesia in energy development in order to meet both domestic and international demand.”

Additional reporting by Antara