A. Masela Working Area Profile
The Masela Working Area Abadi Field was explored by INPEX Ltd, after the global company engaged in the upstream oil and gas industry with its head office in Tokyo, Japan signed the Masela PSC contract on November 16, 1998. The current holders of the Masela Working Area Participating Interest are INPEX Masela Ltd at 65% and Shell Upstream Overseas Services (I) Ltd 35%.
On December 30, 2008, INPEX received temporary approval for POD 1. INPEX also conducted several detailed studies in the form of reserve calculations, development scenarios and gas marketing studies.
The Masela Working Area, which was developed by INPEX, is located off the coast of the Arafura Sea about 155 kilometers Southwest of Saumlaki City, which is directly adjacent to Australia and Timor Leste.
The initial area of the Masela Working Area is around 5,725 km2 which after three provisions according to the current contract has become 2503.30 km2.
Revision of POD 1 Abadi Field is currently in the approval stage of the Minister of Energy and Mineral Resources. The total recoverable reserves of the Abadi Field are around 16.38 TCF. The total natural gas output is 10.5 mtpa (including approximately 9.5 mtpa of LNG, 150 mmscfd of piped gas, and approximately 35000 bopd of condensate).
The Abadi Field was awarded the status of PSN (National Strategic Project) in September 2017. With an estimated very large gas reserves (potential to be the largest gas source in Southeast Asia), it is hoped that the Masela Block can be an opportunity for Maluku to rise and progress.
B. PI Switch Status 10%
Based on the provisions of the Minister of Energy and Mineral Resources No. 37 Article 7, MEA cannot manage Working Area Oil and Gas directly, but must go through PPD Migas or Subsidiaries.
The mechanism for the formation of subsidiaries has been regulated in Law Number 23 of 2014 concerning Regional Government Article 341 paragraph 2 which is based on an investment feasibility analysis by a professional and independent investment analyst.
Based on the above provisions, MEA has appointed JMT Lawhouse to accompany the transfer of the 10% PI as well as provide recommendations on the investment feasibility analysis of the Masela Working Area which will be the basis for the establishment of a subsidiary (PPD Migas) which will manage the 10% PI.
Currently, the process of Transferring 10% PI to the Masela Working Area under the auspices of INPEX is in stage 6, namely the First Statement of Interest by BUMD.
Stage 6 : Submission of Statement of Interest & Ability by BUMD to K3S
At this stage, MEA conveys interest and ability to INPEX in writing with a copy to the Director General of Oil and Gas, Head of SKK Migas, and the Governor on March 30, 2021. This 6th stage is carried out within a maximum period of 60 days from the receipt of the PI offer letter. 10% delivered by INPEX.
Stage 5 : Submission of Written Offer by K3S to BUMD through official letter
At this stage, INPEX submits a written offer to MEA through an official letter with copies to the Director General of Oil and Gas, the Head of SKK Migas, and the Governor on March 30, 2021. Submission of this offer is carried out within a maximum period of 60 days from the receipt of the letter from the Head of SKK Migas to INPEX.
Stage 4 : Submission of the Appointment of BUMD by the Head of SKK Migas to K3S Regarding the Appointment of BUMD
At this stage, the Head of SKK Migas submitted a letter to INPEX as K3S Operator on January 15, 2021 to be able to offer 10% PI to BUMD appointed by the Governor of Maluku. The submission of this letter is carried out within 10 working days from the receipt of the Letter of Appointment of BUMD MEA by the Governor of Maluku to the Head of SKK Migas.
Stage 3 : Submission of Letter of Appointment of BUMD by the Governor to SKK Migas
At this stage the Governor of Maluku is given 1 year from the receipt of the 10% PI Offer Letter from the Head of SKK Migas to prepare BUMD. The Governor of Maluku responded to the offer letter from the Head of SKK Migas by submitting a letter of Appointment of MEA as a 10% PI Recipient to the Head of SKK Migas on November 24, 2020.
Stage 2 : Offer of 10% Participating Interest in WK Migas Masela by SKK Migas to the Governor
At this stage, the Governor of Maluku received an offer letter from the Head of SKK Migas regarding the 10% PI offer at the Masela Working Area Oil and Gas on December 20, 2019.
Stage 1 : Approval of POD 1 at the time of K3S Contract Extension
This stage is the beginning of a series of 10% Participating Interest Offers and Transfers to selected BUMDs carried out by K3S in the Oil and Gas Working Area. The 10% PI offer must be made by K3S to BUMD. This is stated in the Regulation of the Minister of Energy and Mineral Resources Number 37 of 2016 concerning Provisions for Offering 10% Participating Interest in Oil and Gas Working Areas. This 1st stage starts from the effective date of approval for POD-1 Masela Working Area, which is July 5, 2019.