PETRONAS interested to join Abadi LNG project

PETALING JAYA: Malaysian state oil and gas (O&G) company Petroliam Nasional Bhd (PETRONAS) has expressed interest to participate in Indonesia’s takeover of Shell’s stake in the Abadi liquefied natural gas (LNG) project, Indonesia’s upstream O&G regulator told a Parliamentary hearing in Jakarta yesterday.

The Indonesian government has said a consortium of state-owned energy firm Pertamina, the Indonesia Investment Authority or INA – the country’s sovereign wealth fund – and other companies could take Shell’s 35% stake in the Abadi project after the energy company signalled its intention to withdraw.

“PETRONAS is also interested to join and if possible work together with Pertamina in terms of replacing Shell,” chairman of regulator SKK Migas, Dwi Soetjipto, said.

PETRONAS said it could not immediately comment on the matter.

Japanese energy company Inpex Corp controls 65% of the project, also known as the Masela gas project, in Indonesia’s south-east Maluku islands.

Pertamina has conducted data room study and is due to submit a non-binding offer to Inpex and Shell this month, Soetjipto added.

Inpex is expected to submit a revised development plan on the project to include a carbon capture installation in its investment in December. The project had previously been expected to cost around Us$20bil (Rm91bil).

“It is hoped that in line with (Inpex’s new plan), the new partners could also have been decided,” Soetjipto said.