Inpex delays Indonesia Abadi LNG project startup to 2019

Reuters – UK Focus – Tue, Jun 25, 2013 06:09 BST

JAKARTA, June 25 (Reuters) – Construction delays are likely to push back the start of production at the Abadi gas field in eastern Indonesia, operated by Japan  ‘s Inpex, until 2019, the country’s upstream oil and gas regulator said.

The Abadi Floating LNG terminal was originally slated for startup in 2018, with a targeted output of 2.5 million tonnes of LNG per year.

“Inpex looks like it will push back to 2019 because of construction issues affecting the development of the (Abadi)field,” Gde Pradnyana, secretary of regulator SKKMigas, was quoted as saying by domestic media on Tuesday.

Inpex was currently completing its front-end engineering design for the project, which should be complete within 18 months, Pradnyana said, according to Investor Daily newspaper.

The energy explorer was also seeking to extend its existing 20-year production-sharing contract, which is due to expire in 2028, to 40 years, Pradnyana said. Under Indonesian law, contractors are only allowed to extend their contracts a maximum of 10 years before their current contract expires.

Energy Ministry Oil and Gas Director General Edy Hermantoro told the newspaper the government was considering the request but needed to look at gas prices before making a decision.

“We will check economic factors with SKKMigas,” Hermantoro said. “We have to see a cost and benefit analysis.”

Inpex holds a 65 percent stake in Abadi while the remaining 35 percent is held by Royal Dutch Shell , after energy firm Energi Mega Persada sold its 10 percent stake in the project in late May.

The field, which is located in the Arafura Sea, is estimated to hold 18.47 trillion cubic feet of proved and probable gas reserves. (Reporting by Fergus Jensen; Editing by Richard Pullin)

http://uk.finance.yahoo.com/news/inpex-delays-indonesia-abadi-lng-050946181.html

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About artidj

I started working as a field engineer in Oil & Gas industry back in 1996. I do this news clipping of the industry and the geography I am interested in, mainly for my own information. I'm glad you find it useful.
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