Asprindo Proposes Hybrid Scheme for Andaman Block Development

The Indonesian Association of Indigenous Businessmen (Asprindo) has proposed a hybrid scheme for developing the Andaman Block gas field, seeking a middle ground between investment interests and economic benefits for the Aceh region.

The development plan, currently awaiting government approval, presents two main options: processing all gas at sea using Floating Production Storage Offloading (FPSO) facilities, as proposed by the operator, or processing all gas onshore via an Onshore Processing Facility (OPF), which the Aceh government supports. Asprindo's chairman, Jose Rizal, explained that the FPSO option is more efficient and allows for a faster Final Investment Decision (FID), but offers limited economic impact for the region. Conversely, the OPF option requires greater investment in onshore infrastructure but promises more job creation and supports local industrial energy needs.

Asprindo's hybrid proposal suggests processing approximately 60% of the gas at sea via FPSO to maintain project economics and investor confidence, potentially facilitating the FID in 2026. The remaining 40% would be piped to a mini-OPF built in Aceh. This onshore facility would be sufficient to power Aceh's PLN power plant and the Pupuk Iskandar Muda fertilizer plant, while also creating an estimated 3,000 to 5,000 permanent jobs for Acehnese residents.

Rizal emphasized that this balanced approach would safeguard central government revenue, provide investment certainty for investors, and deliver long-term economic benefits to the people of Aceh, including affordable gas for industrial development. He urged swift resolution of the development discussions to avoid delaying an estimated $7 billion investment and encouraged the Aceh government to formally propose the hybrid option to the central government.