Prabowo: Masela Gas Megaproject Worth Rp 390 Trillion to Boost National Development

President Prabowo Subianto has officiated the groundbreaking of the giant Abadi Field gas project in the Masela Block, located in the Tanimbar Islands, Maluku. The President stated that the US$21 billion project is expected to support the nation’s development agenda. “This project has an investment of US$20.9 billion, nearly US$21 billion, and will produce 9 million tonnes of gas (LNG), condensate and so on, so this will greatly help the Indonesian nation carry out development,” Prabowo said during the ceremony via video conference from the State Palace in Jakarta. Prabowo explained that Indonesia is pushing a downstreaming agenda across all sectors, which requires large energy sources. He noted that Indonesia is fortunate to possess substantial energy resources amidst a world full of danger. “Now Indonesia has sufficient resilience, we have anticipated, we have steps to bring Indonesia into a good state,” he said. The President also expressed his appreciation to Inpex Corporation CEO Takayuki Ueda, who attended the ceremony, and admitted he was impressed by Ueda’s command of the Indonesian language. The Abadi LNG Project is being developed by Inpex Masela Ltd alongside Pertamina and Petronas. It is designed to produce 9.5 million tonnes of LNG per year, channel 150 MMSCFD of domestic pipeline gas, and produce approximately 35,000 barrels of condensate per day. Energy and Mineral Resources Minister Bahlil Lahadalia reported that the project had been initiated 28 years ago and handled by six Indonesian presidents, but only under President Prabowo’s administration has the megaproject been executed. Bahlil noted that the project had been mired in lengthy debates over an onshore versus offshore development concept. Following the President’s directive to expedite execution, a first warning letter was sent to Inpex. The investment is estimated at US$20.95 billion, equivalent to nearly Rp 390 trillion. Inpex Masela Ltd holds the largest participating interest in the block at 65 percent. The remaining 35 percent stake, previously held by Shell, was acquired by Pertamina Hulu Energi and Petronas in 2023. The Abadi Field is a deep-water gas field with Indonesia’s largest gas reserves, located about 160 kilometres off Yamdena Island in the Arafura Sea, with an estimated potential of 6.97 trillion cubic feet of gas. The development concept includes deep-water drilling, subsea facilities, a floating production storage and offloading unit, and an onshore LNG plant, with the potential to absorb up to 10,000 workers.