Expert says Masela groundbreaking strengthens upstream oil, gas

Jakarta (ANTARA) - Executive Director of the Center for Energy and Mining Law Studies (PUSHEP), Bisman Bhaktiar, views the Masela Block groundbreaking as a significant breakthrough for Indonesia's upstream oil and gas sector following nearly three decades of delays.

"The benefits are significant, particularly for energy security and economic growth, and they will certainly contribute to higher state revenue," Bisman remarked on Friday.

According to him, the government's groundbreaking of the Masela Block is a major milestone for Indonesia's upstream oil and gas sector, reflecting both investment certainty and the continuity of operations.

The Masela Block will become one of the largest sources of natural gas, capable of supplying industrial and other energy needs, he added.

"Once production is underway, it will reduce energy imports and maintain the national gas supply," he continued.

Bisman addressed that the Masela Block brings the potential to boost economic growth in Eastern Indonesia through job provision and strengthen Indonesia's position as a natural gas producer in the Asian region.

The Abadi Masela liquefied natural gas (LNG) project was designated to become one of the largest energy industrial centers in eastern Indonesia, strengthening national energy security and promoting equitable development throughout the eastern region of the country.

Minister of State Secretary Prasetyo Hadi said the groundbreaking ceremony for the project in the Tanimbar Islands District, Maluku, on Thursday (July 16), marks the beginning of one of the largest energy investments in Indonesian history.

"The presence of this project will also encourage the growth of supporting industries, expand business opportunities for MSMEs, and open up extensive job opportunities by prioritizing local workers from Maluku and the Tanimbar Islands District," he remarked.

The project is being developed by INPEX Masela Ltd, together with Pertamina and Petronas, with an investment value of approximately US$20.9 billion.

The project is targeted to produce 9.5 million tons of LNG per annum (MTPA), distribute 150 million standard cubic feet per day (MMSCFD) of domestic pipeline gas, and produce approximately 35,000 barrels of condensate per day.

Prasetyo stated that the project has entered the construction phase after nearly three decades of development since the contract was signed in 1998.

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Translator: Khaerul Izan, Resinta Sulistiyandari

Editor: Azis Kurmala

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