5 Key Takeaways from Purbaya's Meeting with Inpex Regarding the Jumbo Gas Project
5 Key Takeaways from Purbaya’s Meeting with Inpex Regarding the Jumbo Gas Project
Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa held a nearly two-hour meeting with Inpex Masela Ltd and the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) on Tuesday (24/2/2026). The meeting focused on accelerating the Abadi Gas Field project in the Masela Block, Arafura Sea, Maluku.
At least five key points emerged from the meeting and the project’s progress:
- Purbaya Urges No Further Delays to the Masela Block Project
During the meeting held at the Ministry of Finance on Tuesday (24/2/2026), Purbaya, who is also the Deputy Chairman I of the Task Force for the Acceleration of Strategic Government Programs (P2SP) or the Deregulation Task Force, expressed hope that the nearly US$21 billion (approximately Rp352 trillion) project would not face further setbacks.
Purbaya acknowledged that the Masela project had been ongoing for some time and had previously been hampered by various permits. However, the latest progress shows advancements, with the Environmental Impact Analysis (AMDAL) approval being issued by the Ministry of Environment (KLH) and handed over to Inpex last Friday (20/2/2026).
- A Special Task Force is Formed
To ensure the project does not face further delays, Purbaya requested the formation of a special task force to allow Inpex to regularly report any obstacles related to the continuation of the Masela Block project.
“They can report it. It will then be analysed at the Ministry of Finance. But the analysis will be quick. So if there are no issues domestically, it will be escalated abroad,” said Purbaya.
- The Government Guarantees the Integrity of the Masela Block Contract
During the meeting, Purbaya also assured that the government is committed to respecting the Masela Block project contract agreed upon with the Japanese company, Inpex Masela Ltd.
However, Purbaya stated that the government may still issue new, general regulations for the sake of national policy. In some cases, these regulations may indirectly impact ongoing projects.
“However, at some point, we may introduce some rules or regulations to oversee the project. This will not intentionally affect the contract, but due to the impact of the connection, it may affect your contract,” said Purbaya.
If this occurs, Purbaya requested that investors immediately coordinate with the government so that adjustments can be made without disrupting investment certainty.
“Let us know if this happens. We will make adjustments. But we will never violate the integrity of the contract. This is very important for investment confidence in this country. So, please, don’t be afraid,” he said.
- Purbaya Asks for Competitive Gas Prices for the Masela Block
Purbaya also asked the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) to ensure that the gas prices produced by Inpex Masela Ltd in the Masela Block project are more competitive, especially for the domestic industrial sector that uses gas.
Purbaya believes that the planned gas prices for the Masela Block in the Plan of Development (PoD) of around US$6.8 per MMBTU are quite good. However, the industry has the potential to obtain higher gas prices, especially if they receive liquefied natural gas (LNG).
Meanwhile, for the price of liquefied natural gas (LNG) from the Masela Block, Purbaya also requested that the price be controlled at around US$9 per MMBTU. In the Plan of Development (PoD), the LNG price from the Masela Block is estimated to be around 13.5% of the Indonesian Crude Price (ICP).
- The Masela Block Project is Targeted for Completion Before 2029
Furthermore, Purbaya also requested that the construction of the Masela Block project be accelerated before 2029 so that it can start production soon. Inpex previously stated that the project’s target onstream date was between 2030 and 2031.
He also requested that the groundbreaking ceremony for the Engineering, Procurement, Construction (EPC) work be held after Eid al-Fitr. The groundbreaking is a preparation for the project to enter the onshore LNG (OLNG) phase following the issuance of the Masela Block AMDAL permit.
“So the gas will be in production. So we will accelerate it as much as possible. So I can only support it. Clearly, we will eliminate all obstacles from the government,” said Purbaya.
As is well known, the Abadi Field in the Masela Block is a deepwater gas field with the largest gas reserves in Indonesia, located about 160 kilometers off the coast of Yamdena Island in the Arafura Sea with a water depth of 400-800 meters. The potential gas from the Abadi Field is estimated at 6.97 trillion cubic feet (TCF).
The Production Sharing Contract (PSC) for Masela, which was signed in 1998 and has been extended until 2055, has the potential to produce 9.5 MMTPA (million metric tons per year) of LNG and 150 MMSCFD (million standard cubic feet per day) of pipeline gas. In addition, the Abadi Field is expected to produce condensate production of 35,000 barrels per day.
The development concept of a greenfield field with high complexity and significant risks, including deepwater drilling, subsea facilities, FPSO (Floating Production Storage and Offloading), and onshore LNG plant, will be a challenge as well as a great opportunity for PHE and its partners to realize it. In addition, the development of this field has the potential to absorb up to 10,000 workers.
(ven/wia)