Tugu Insurance Leads Consortium for World's Largest Offshore Project

PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) is leading an insurance consortium for the giant Abadi Field gas project in the Masela Block, which has an estimated investment value of up to US$30 billion or around Rp510 trillion. Director of Engineering at Tugu Insurance, Fadlil Iswahyudi, stated that the company’s involvement is part of a mandate to provide insurance protection for national strategic projects managed by PT Pertamina Hulu Energi (PHE). As the leader of the consortium, TUGU is responsible for coordinating all member insurance companies to ensure smooth operations. The project is considered highly complex due to its scale, with the Masela Block potentially becoming one of the world’s largest offshore projects. The enormous asset value requiring protection necessitates the aggregation of global insurance capacity, as the current global offshore insurance market capacity is only around US$5-6 billion. TUGU faces the challenge of orchestrating this global market capacity to meet the project’s protection needs while ensuring competitive and sustainable premium terms. The government conducted the groundbreaking for the Abadi Field project on 16 July 2026, marking a significant milestone after nearly 30 years since the initial contract was signed in 1998. The project, located approximately 160 kilometres offshore from Yamdena Island in the Arafura Sea, is expected to produce 9.5 million metric tonnes of LNG per year, 150 million standard cubic feet of gas per day, and up to 35,000 barrels of condensate per day.