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

Maluku, CNBC Indonesia - President Prabowo Subianto has officially marked the groundbreaking of the “giant” Abadi gas field project in the Masela Block, located in the Tanimbar Islands, Maluku, on Thursday (16/7/2026).

President Prabowo said the project, worth US$21 billion, is expected to help advance the nation’s development.

“It was mentioned earlier that this project involves an investment of US$20.9 billion, or 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 its development,” Prabowo said during the groundbreaking ceremony for the Masela LNG plant via video conference from the State Palace in Jakarta on Thursday (16/7/2026).

Prabowo explained that Indonesia is currently pushing a downstream processing agenda across all sectors, which requires substantial energy sources. Fortunately, he said, Indonesia possesses significant energy resources at a time when the world faces considerable dangers.

“Indonesia now has sufficient resilience; we have anticipated matters and have steps in place to keep Indonesia in a good position,” Prabowo said.

On the occasion, Prabowo also expressed his appreciation and gratitude to Inpex Corporation CEO Takayuki Ueda, who attended the ceremony. The head of state also expressed admiration for Ueda’s command of the Indonesian language.

“I am impressed that you can speak Indonesian. Thank you to Inpex for appointing someone like Takayuki Ueda; I do not see many foreign company CEOs willing to learn Indonesian,” he said.

The Abadi Masela LNG project is being developed by Inpex Masela Ltd together with Pertamina and Petronas, with an investment value of around US$20.9 billion.

The project is designed to produce 9.5 million tonnes of LNG per year (MTPA), or around 1,200 MMSCFD, supply 150 MMSCFD of gas to the domestic pipeline network, and yield approximately 35,000 barrels of condensate per day to support national energy needs.

After a development process spanning nearly three decades since the contract was signed in 1998, the project has finally entered the construction phase. The LNG plant is projected to become one of the largest energy industry hubs in eastern Indonesia.

Masela Block Profile

Minister of Energy and Mineral Resources Bahlil Lahadalia, in his report on the Masela Block project, explained that the project was first initiated 28 years ago and has been handled by six Indonesian presidents. However, only under President Prabowo has this “giant” gas project finally been executed.

“Today, on 16 July, we mark a new chapter for the Abadi Masela project, which was first announced 28 years ago. There have been six presidents, but only President Prabowo Subianto has been able to execute it today,” Bahlil said in his report at the Masela Block groundbreaking ceremony in the Tanimbar Islands, Maluku, on Thursday (16/7/2026).

“I must convey to the President that this project was long held up by a protracted debate between offshore and onshore development, a debate that dragged on. But on the President’s guidance to execute quickly and his firm clarification of all oil and gas concessions whose Plans of Development had been approved but not implemented, with instructions for swift action, we issued a first warning letter to Inpex,” Bahlil said.

“And thank God, today we are carrying out the groundbreaking,” he concluded.

Bahlil said the investment in this “giant” gas project is estimated at US$20.95 billion, equivalent to approximately Rp 390 trillion.

“Mr President, we report that with this groundbreaking, work is commencing: first, 11 development wells plus 4 follow-up wells; second, the construction of various facilities including port jetties. The EPC is already under way, and the investment is roughly US$20.95 billion, equivalent to nearly Rp 390 trillion. This will produce 9.5 million tonnes of LNG per year and 35,000 barrels of condensate per day,” he explained.

Inpex Masela Ltd holds the largest participating interest (PI) in the Masela Block, at 65 percent.

Previously, Inpex was partnered by Shell Upstream Overseas Services with a 35 percent stake. However, Shell decided to withdraw from the Abadi gas project in Maluku.

Shell’s 35 percent stake was subsequently taken up in July 2023 by PT Pertamina Hulu Energi through its subsidiary PT Pertamina Hulu Energi Masela (PHE Masela) with 20 percent, and Petronas with 15 percent.

The sale and purchase agreement for the participating interest from Shell to Pertamina and Petronas was signed on 25 July 2023, with the Energy and Mineral Resources Minister’s approval for the PI transfer obtained on 4 October 2023.

The Abadi field in the Masela Block is a deep-sea gas field with Indonesia’s largest gas reserves, located approximately 160 kilometres off the coast of Yamdena Island in the Arafura Sea, at sea depths of 400-800 metres. The gas potential of the Abadi field is estimated at 6.97 trillion cubic feet (TCF).

After the production-sharing contract was signed in 1998, Inpex discovered the jumbo gas reserves in the Masela Block in 2000.

It was only 19 years later that the Indonesian government granted approval for the first Plan of Development (PoD-I) to Inpex, to produce 9.5 million tonnes of LNG per year (MTPA), equivalent to 1,200 MMSCFD from the Masela LNG plant, along with 150 million standard cubic feet per day (MMSCFD) of pipeline gas and 35,000 barrels per day (bph) of condensate.

The development of this green field (a new oil and gas field) entails high complexity and significant risk, encompassing deepwater drilling, subsea facilities, an FPSO (Floating Production Storage and Offloading) vessel and an onshore LNG plant, which will be both a challenge and a major opportunity for PHE and its partners to realise. The field’s development is also expected to absorb up to 10,000 workers.

The Masela Block is also planned to produce clean energy through the application of carbon capture and storage (CCS) technology, in support of the government’s programme to reduce carbon emissions and promote sustainability during the energy transition era.

The application of CCS was approved by the Indonesian government on 28 November 2023 through the second revision of PoD-I. This was followed by the FEED tender process, and finally, on Wednesday 9 April 2025, Inpex launched the FEED for the onshore LNG plant.