Maluku, CNBC Indonesia - President Prabowo Subianto has officially\nmarked the groundbreaking of the \u201cgiant\u201d Abadi gas field project in the\nMasela Block, located in the Tanimbar Islands, Maluku, on Thursday\n(16\/7\/2026).<\/p>\n
President Prabowo said the project, worth US$21 billion, is expected\nto help advance the nation\u2019s development.<\/p>\n
\u201cIt was mentioned earlier that this project involves an investment of\nUS$20.9 billion, or nearly US$21 billion, and will produce 9 million\ntonnes of gas (LNG), condensate and so on, so this will greatly help the\nIndonesian nation carry out its development,\u201d Prabowo said during the\ngroundbreaking ceremony for the Masela LNG plant via video conference\nfrom the State Palace in Jakarta on Thursday (16\/7\/2026).<\/p>\n
Prabowo explained that Indonesia is currently pushing a downstream\nprocessing agenda across all sectors, which requires substantial energy\nsources. Fortunately, he said, Indonesia possesses significant energy\nresources at a time when the world faces considerable dangers.<\/p>\n
\u201cIndonesia now has sufficient resilience; we have anticipated matters\nand have steps in place to keep Indonesia in a good position,\u201d Prabowo\nsaid.<\/p>\n
On the occasion, Prabowo also expressed his appreciation and\ngratitude to Inpex Corporation CEO Takayuki Ueda, who attended the\nceremony. The head of state also expressed admiration for Ueda\u2019s command\nof the Indonesian language.<\/p>\n
\u201cI am impressed that you can speak Indonesian. Thank you to Inpex for\nappointing someone like Takayuki Ueda; I do not see many foreign company\nCEOs willing to learn Indonesian,\u201d he said.<\/p>\n
The Abadi Masela LNG project is being developed by Inpex Masela Ltd\ntogether with Pertamina and Petronas, with an investment value of around\nUS$20.9 billion.<\/p>\n
The project is designed to produce 9.5 million tonnes of LNG per year\n(MTPA), or around 1,200 MMSCFD, supply 150 MMSCFD of gas to the domestic\npipeline network, and yield approximately 35,000 barrels of condensate\nper day to support national energy needs.<\/p>\n
After a development process spanning nearly three decades since the\ncontract was signed in 1998, the project has finally entered the\nconstruction phase. The LNG plant is projected to become one of the\nlargest energy industry hubs in eastern Indonesia.<\/p>\n
Masela Block Profile<\/p>\n
Minister of Energy and Mineral Resources Bahlil Lahadalia, in his\nreport on the Masela Block project, explained that the project was first\ninitiated 28 years ago and has been handled by six Indonesian\npresidents. However, only under President Prabowo has this \u201cgiant\u201d gas\nproject finally been executed.<\/p>\n
\u201cToday, on 16 July, we mark a new chapter for the Abadi Masela\nproject, which was first announced 28 years ago. There have been six\npresidents, but only President Prabowo Subianto has been able to execute\nit today,\u201d Bahlil said in his report at the Masela Block groundbreaking\nceremony in the Tanimbar Islands, Maluku, on Thursday (16\/7\/2026).<\/p>\n
\u201cI must convey to the President that this project was long held up by\na protracted debate between offshore and onshore development, a debate\nthat dragged on. But on the President\u2019s guidance to execute quickly and\nhis firm clarification of all oil and gas concessions whose Plans of\nDevelopment had been approved but not implemented, with instructions for\nswift action, we issued a first warning letter to Inpex,\u201d Bahlil\nsaid.<\/p>\n
\u201cAnd thank God, today we are carrying out the groundbreaking,\u201d he\nconcluded.<\/p>\n
Bahlil said the investment in this \u201cgiant\u201d gas project is estimated\nat US$20.95 billion, equivalent to approximately Rp 390 trillion.<\/p>\n
\u201cMr President, we report that with this groundbreaking, work is\ncommencing: first, 11 development wells plus 4 follow-up wells; second,\nthe construction of various facilities including port jetties. The EPC\nis already under way, and the investment is roughly US$20.95 billion,\nequivalent to nearly Rp 390 trillion. This will produce 9.5 million\ntonnes of LNG per year and 35,000 barrels of condensate per day,\u201d he\nexplained.<\/p>\n
Inpex Masela Ltd holds the largest participating interest (PI) in the\nMasela Block, at 65 percent.<\/p>\n
Previously, Inpex was partnered by Shell Upstream Overseas Services\nwith a 35 percent stake. However, Shell decided to withdraw from the\nAbadi gas project in Maluku.<\/p>\n
Shell\u2019s 35 percent stake was subsequently taken up in July 2023 by PT\nPertamina Hulu Energi through its subsidiary PT Pertamina Hulu Energi\nMasela (PHE Masela) with 20 percent, and Petronas with 15 percent.<\/p>\n
The sale and purchase agreement for the participating interest from\nShell to Pertamina and Petronas was signed on 25 July 2023, with the\nEnergy and Mineral Resources Minister\u2019s approval for the PI transfer\nobtained on 4 October 2023.<\/p>\n
The Abadi field in the Masela Block is a deep-sea gas field with\nIndonesia\u2019s largest gas reserves, located approximately 160 kilometres\noff the coast of Yamdena Island in the Arafura Sea, at sea depths of\n400-800 metres. The gas potential of the Abadi field is estimated at\n6.97 trillion cubic feet (TCF).<\/p>\n
After the production-sharing contract was signed in 1998, Inpex\ndiscovered the jumbo gas reserves in the Masela Block in 2000.<\/p>\n
It was only 19 years later that the Indonesian government granted\napproval for the first Plan of Development (PoD-I) to Inpex, to produce\n9.5 million tonnes of LNG per year (MTPA), equivalent to 1,200 MMSCFD\nfrom the Masela LNG plant, along with 150 million standard cubic feet\nper day (MMSCFD) of pipeline gas and 35,000 barrels per day (bph) of\ncondensate.<\/p>\n
The development of this green field (a new oil and gas field) entails\nhigh complexity and significant risk, encompassing deepwater drilling,\nsubsea facilities, an FPSO (Floating Production Storage and Offloading)\nvessel and an onshore LNG plant, which will be both a challenge and a\nmajor opportunity for PHE and its partners to realise. The field\u2019s\ndevelopment is also expected to absorb up to 10,000 workers.<\/p>\n
The Masela Block is also planned to produce clean energy through the\napplication of carbon capture and storage (CCS) technology, in support\nof the government\u2019s programme to reduce carbon emissions and promote\nsustainability during the energy transition era.<\/p>\n
The application of CCS was approved by the Indonesian government on\n28 November 2023 through the second revision of PoD-I. This was followed\nby the FEED tender process, and finally, on Wednesday 9 April 2025,\nInpex launched the FEED for the onshore LNG plant.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/prabowo-masela-gas-megaproject-worth-rp-390-trillion-to-boost-national-development-1784209969", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }