Energy Minister on Andaman Block Gas Processing: We Seek a Win-Win

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, confirmed that the government is still deliberating the optimal processing scheme for the newly discovered gas reserves in the Andaman Block. The decision is pending a thorough economic analysis to ensure a mutually beneficial outcome, particularly considering Aceh's request for onshore processing.

"I cannot decide yet because it is still under discussion. We must find a win-win solution (regarding Aceh's request). We cannot say 'yes' if the cost is too high," Lahadalia stated in Banda Aceh. He emphasized that any decision must be economically sound, benefiting both the local population through revenue and investors, while allowing for shared income.

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I cannot decide yet because it is still under discussion. We must find a win-win solution (regarding Aceh's request). We cannot say 'yes' if the cost is too high.

Aceh's regional government has advocated for onshore gas processing at the Arun Lhokseumawe Special Economic Zone (KEK), rejecting the offshore Floating Production, Storage, and Offloading (FPSO) scheme. They also seek to allocate some of the gas for local industries and have requested a temporary delay in the Plan of Development (PoD).

Mubadala Energy recently announced a significant gas discovery in the offshore Andaman Block, with initial production targeted at 300 million standard cubic feet per day (MMSCFD). However, Lahadalia noted that the offshore location necessitates high-cost pipeline construction, potentially driving up the gas price to over $10 per MMBTU, making it less competitive.

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Because there is no business that will end in loss. Everyone must profit, yes. Profit for the people of Aceh in the context of their income, profit for investors. And we can share that income.