Through the MoU, Inpex and Pertamina said they will seek to collaborate strategically on a wide range of fields with a focus on the Abadi LNG project’s value chain.
Specifically, the companies intend to pursue opportunities to collaborate on the offtake and transportation of LNG and other products, the production of hydrogen and ammonia and the provision of the needs of local stakeholders. Furthermore, the companies noted they will seek to secure the long-term competitiveness and sustainability of the Abadi LNG project as well as further improvement of project value while generating synergistic effects.
Through its subsidiary Inpex Masela, Inpex is currently preparing the Abadi LNG project for development as an operator in the Masela Block in the Arafura Sea in Indonesia.
The MoU follows the execution of a Sales and Purchase Agreement (SPA) between Shell Upstream Overseas Services Limited, Pertamina Hulu Energi (PHE), a subsidiary of Pertamina, and Petronas Masela Sendirian Berhad, a subsidiary of Petronas, concerning the transfer of Shell’s participating interest in the Abadi LNG project to PHE and Petronas. The transfer is subject to the fulfillment of certain joint venture procedures and is conditional on the approval of the Indonesian government.
