Jakarta, Ruangenergi.com – Director of Maluku Energi Abadi (MEA), Ir. Musalam Latuconsina emphasized that the development of the Masela working area (WK) in the Masela Block, Tanimbar Islands, Maluku Province refers to the Cooperation Contract between Inpex as the Operator representing other KKKS if there is more than one KKKS.
However, according to him, currently, SKK Migas and Inpex need to consider the costs, time and opportunities wasted due to the delay in the development stage of the working area.
“This is important, because the reasons for the previous delay due to Covid-19 and falling prices are now irrelevant,” said Musalam to Ruangenergi.com, Wednesday (11/03/2021).
Furthermore, he also asked that SKK Migas and Inpex need to open up to explain the real reasons to all key stakeholders, especially to the government and the community in Maluku.
“They (SKK Migas and Inpex-ed) must explain the commitment and firmness in the implementation of the contract between Inpex and SKK Migas, and what the future fate of the Masela project will be,” he said.
He also explained that in every Contract there are obligations and sanctions, but whether SKK Migas will be rigid or flexible is at the discretion of the government.
“The public is free to give an assessment of Inpex’s commitment and the firmness of SKK Migas. What is certain is that we in the regions support any policy of the Central Government represented by SKK Migas in carrying out the contract,” concluded Musalam.
Contacted separately, the expert on Oil and Gas and Regional Planning, DR. Ridwan Nyak Baik said, as the authority holder representing the government, SKK Migas should have known more “outside-in” regarding the continuation of the project. According to him, several months ago, SKK Migas officials made a statement that the release of 35% of Shell’s PI is expected to be completed by the end of 2021.
“If until November 2021, there is no bright spot, of course SKK Migas is very understanding about what and why. It should be explained to other stakeholders so that all are transparent and quickly anticipate with adjustment steps. Especially, the influence in the field, “explained this member of the Unpatti Ambon Rector’s Oil and Gas Expert Team.
Ridwan considered that there was something strange about what the Deputy Head of SKK Migas said regarding the news entitled “The social impact is getting bigger due to the delay in the Masela LNG project” which was released by Ruangenergi.com, Tuesday (02/11/2021).
“It is strange that the Deputy Head of SKK Migas could make such a qualitative gray statement. It is not specified what the social impacts are: whether crime increases, poverty rates increase, local wisdom values decrease, or something else,” he said.
“It should also be explained quantitatively how big the impact is. Can it be controlled and managed? If possible, how long can the impact management be carried out both by the region and with other stakeholders. Then, what strategic steps have been taken by SKK Migas together with the regional government in suppressing the potential impact,” he continued.
In addition, he also questioned what SKK Migas had done in lobbying other potential investors such as Pertamina, who was often mentioned to be participating in the perpetual LNG project.
“In my opinion, the qualitative statement of the Deputy Head of SKK Migas regarding the social impacts due to the delay in the Masela LNG project is not a solution. However, it is more readable as an attempt to cover up the failure of SKK Migas in finding a new partner to replace Shell. Or it could also be read as the failure of SKK Migas to “press” Shell to be more serious in its attitude of selling the 35% PI it owns, after all, the data room has long been open to enthusiasts,” he explained.
He further said that, by not quantitatively detailing the social impacts that emerged (type and magnitude), SKK Migas also seemed to want to avoid public assessments of the failure of the technoeconomic aspects of the policies implemented in the Masela LNG project.
“In a clearer and more conical language, this shows the inability of SKK Migas management in carrying out President Jokowi’s decision regarding the Abadi Masela LNG Project being built onshore (Onshore),” he concluded.
Previously, Deputy Head of SKK Migas Fatar Yani Abdurrahman revealed, the social impact due to the delay in the Masela LNG/LNG Abadi Refinery Project, which was initiated by Inpex Masela Ltd. is getting bigger where people’s hopes are starting to fade due to the unclear continuation of the project.
“On the other hand, the longer Inpex starts its main development activities, the slower the onstream schedule and the impact on the LNG commercial, which has to compete even more heavily,” he said.
According to him, the current price of oil and LNG has gone up, so Inpex does not have to hold back on developing the project anymore. At that time he was detained because he was waiting for Shell to come out and because the price of oil had fallen once.
“But now that the price has risen well above the project’s assumptions and has lasted a long time… why is Inpex silent? Shell itself is targeted to be out by the end of 2021… the status of Shell’s exit is still unclear what Shell will do when oil and LNG prices are already high,” he said. (SF)