Indonesia Allocates 60% of Masela Block Gas for Domestic Use

Indonesia's Ministry of Energy and Mineral Resources has mandated that a minimum of 60% of gas production from the Abadi Field in the Masela Block must be allocated for domestic consumption. This decision prioritizes the nation's needs, directing the gas towards vital industries such as fertilizer production, power generation, and gas network expansion.

Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the remaining 40% will be available for export. He highlighted that a portion of the domestic allocation will support PT Pupuk's planned industrial development within the region. Beyond fertilizer, the gas supply will also serve PT PLN, PT Perusahaan Gas Negara (PGN), and various private companies.

Lahadalia emphasized that this strategy is designed to enhance the value derived from natural resources and foster new economic activities, particularly in Maluku. The Ministry, in conjunction with SKK Migas, has formally incorporated this domestic allocation into the project's Plan of Development (PoD).

The Abadi Field, located in the Masela Working Area, is a National Strategic Project situated approximately 180 kilometers offshore in the Arafura Sea. The block's cooperation contract extends until 2055. It is projected to produce 9.5 million tons of LNG annually, 150 million standard cubic feet per day (MMSCFD) of pipeline gas, and about 35,000 barrels of condensate per day. The project involves an investment of $21 billion, including an additional $1 billion for carbon capture and storage technology. INPEX Corporation, through its subsidiary INPEX Masela, Ltd., operates the block.

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We will allocate at least 60 percent of the Masela Block gas production to meet domestic needs and a maximum of 40 percent for export. Some of the gas will be used for PT Pupuk's downstreaming, which plans to build an industry here.