Inpex Seeks Regulatory Assurance from Finance Minister for Masela Block Development Funding Certainty

Jakarta – Inpex Masela Ltd has requested assurance of regulatory certainty to develop the Abadi Field in Block Masela, as the major gas project moves towards its Final Investment Decision (FID).

Project Director Inpex Masela Jarrad Blinco acknowledged that the giant gas project faces competitive challenges. He emphasised that Block Masela’s development must compete directly with other major oil and gas projects in the United States and the Middle East for access to contractors and global supply chains.

“This is the challenge we face in developing this project. A project of this scale requires us to compete globally. We are competing against the United States, we are competing against the Middle East. This is where I need support from the government to understand that this is an international project,” he said during a Block Masela Debottlenecking Session at the Ministry of Finance offices on Wednesday, 25 February 2026.

According to Blinco, regulatory streamlining is key to making project costs more efficient. He hopes the government can cut bureaucratic barriers so that global contractors are attracted to participate and can execute the project at costs more competitive than projects in other countries.

“How can we look at streamlining regulations and even making regulations slightly easier so that contractors can enter and build this faster and cheaper? That is important for FID,” he added.

In response to the request, Finance Minister Purbaya Yudhi Sadewa provided firm assurances directly to Inpex management. Purbaya ensured the Indonesian government is fully committed to protecting contracts and will not issue regulations that harm existing agreements.

“I want to emphasise that Indonesia has never breached a contract and never changed regulations once a contract has been signed. We always respect our contracts and obligations, so do not worry about that,” Purbaya said.

The Abadi Field in Block Masela is a deepwater gas field with Indonesia’s largest proven gas reserves, located approximately 160 kilometres offshore Yamdena Island in the Arafura Sea at depths of 400–800 metres. The Abadi Field’s gas reserves are estimated at 6.97 trillion cubic feet (TCF).

The Production Sharing Contract (PSC) for Masela, signed in 1998 and extended until 2055, is projected to produce 9.5 MMTPA (million metric tonnes per annum) of LNG and 150 MMSCFD (million standard cubic feet per day) of pipeline gas. Additionally, the Abadi Field is estimated to generate condensate production of 35,000 barrels per day.

The greenfield development concept, which involves high complexity and significant risks including deepwater drilling, subsea facilities, a Floating Production Storage and Offloading (FPSO) vessel, and an onshore LNG plant, will represent both a major challenge and significant opportunity for the Operator and its partners. The project is also estimated to create employment for up to 10,000 workers.

Block Masela is also planned to produce clean LNG through implementation of Carbon Capture and Storage (CCS) technology to support the government’s programme to reduce carbon emissions and promote sustainability during the energy transition era.