Liputan6.com, Jakarta – The distribution of the Masela Block participation rights of 10 percent to the Maluku Regional Government must provide benefits to the surrounding community. The Masela Block oil and gas project can also minimize Indonesia from the gas crisis.
Secretary General (Secretary General) of the National Energy Council (DEN) Djoko Siswanto said the distribution of Participating Interest (PI) of 10 percent would increase local government revenues, in addition to driving economic improvement in the surrounding area because it creates jobs and transfers technology.
“Including the procurement of goods and services with regional involvement through a 10 percent PI,” said Djoko, in Jakarta, Wednesday (12/8/2021).
The Masela Block plays an important role in meeting Indonesia’s gas needs. The reason is, if the Abadi Field gas project does not operate as scheduled in 2027, it is estimated that this country will lack natural gas.
“If the Masela Block is in production, it will increase Indonesia’s energy security. What if there is no Masela, we will have a gas shortage in 2027,” he said.
According to Djoko, the gas produced by the Masela Block can cover the shortage of gas supply due to decreased production from old gas wells. However, in order for gas from the Masela Block to be able to produce, it requires certainty of a gas buyer with a minimum contract of 80 percent of the production capacity.
“So, for example, 10 MMSCFD, 100 MMSCFD, this investment cannot be returned, so a minimum of 80 percent has been contracted,” he said.
Currently, there are seven potential gas buyers for the Masela Block. These include PGN, PLN, Pupuk Indonesia, China National Offshore Oil Corporation (CNOOC), CPC Corporation, Sinopec, and Kyushu Electric.
To attract buyers of the Masela Block gas, the government has provided many incentives to reduce gas prices. As for the development of the Masela Block, the government has provided various incentives.
Among them, profit sharing of 50 percent for Inpex until 2055 assuming an investment cost of USD 20 billion, investment credit of 80 percent in the offshore area and 50 percent in the onshore area. Then, the Internal Rate Return (IRR) which reached 15 percent.
Source : https://m.liputan6.com/bisnis/read/4731942/pemda-dapat-hak-partisipasi-10-persen-blok-masela-mampu-dongkrak-ekonomi-maluku?