Completion of the acquisition of interest in the Abadi LNG Project, the Masela Block, Indonesia

Shell and Inpex today announced that they have completed the necessary procedures for the transfer of PT EMP Energi Indonesia (EMPI)’s 10% participating interest in the Masela Block, Arafura Sea, Indonesia (Abadi LNG Project). The participating interest is assigned in equal proportions of 5% (five percent) each to INPEX and SHELL.  

This acquisition takes place following EMPI’s decision to divest its participating interest in the Abadi LNG Project.  Based on the agreement, INPEX will continue to act as the operator and retain a 65% participating interest while Shell will hold a 35% participating interest.

With continued support from the Indonesian Government and other stakeholders, INPEX and its partner Shell will proceed with the Abadi LNG Project for a successful commercial production.

About the Abadi LNG Project

The Abadi gas field was discovered in 2000, and the subsequent six appraisal wells and the reservoir study results confirmed sufficient gas reserves for LNG development.  In December 2010, the plan of development was approved by the Indonesian Government that the Abadi gas field will be developed in phases and a Floating LNG (FLNG) plant will be constructed and utilized for an annual production of 2.5 million tonnes for the first phase development.

The project is now conducting Front End Engineering and Design (FEED) work to ensure successful development of the Abadi LNG Project while further maturing future subsequent development options utilizing the full gas reserves.