February 11, 2026 | 08:14 pm
TEMPO.CO, Jakarta - The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) announced that the environmental impact assessment document for the Abadi LNG project in the Masela Block has been completed. The project, managed by Inpex Masela Ltd., is expected to break ground in March 2026.
"[The project] is expected to kick off production in 2030, or earlier. With investments worth nearly US$21 billion, hopefully the groundbreaking can be conducted before Eid," said SKK Migas Head Djoko Siswanto during a parliamentary hearing with House Commission XII on Wednesday, February 11, 2026.
With the environmental assessment issued, Djoko said the project can enter the initial phase of physical construction. According to him, the Abadi LNG field is projected to have a production capacity of 1,600 million standard cubic feet per day (MMSCFD), including a pipeline gas allocation of 150 MMSCFD, and is expected to yield around 35,000 barrels of condensate per day.
Prior to this, the government had officially commenced the Front-End Engineering Design (FEED) phase for the project in August 2025.
The Masela Block is managed by INPEX Masela Ltd., a Japanese oil and gas company. For the FEED phase, INPEX has appointed PT Adhi Karya (Persero) Tbk as the main contractor to collaborate with KBR and Samsung Engineering & Construction.
Overall, the project aims to produce 9.5 million tons of LNG per year, 150 MMSCFD pipeline gas, and 35 thousand barrels of condensate per day. The onshore LNG facility will also be equipped with CCS technology to reduce carbon emissions, supporting national emission reduction targets.
During the development phase, the project is estimated to employ more than 12,600 workers, while the operational phase is expected to involve around 850 employees. The government targets the Abadi LNG Field to begin production in 2029, with full operation in the fourth quarter of that year.
The Masela Block covers approximately 4,291.35 km in the Arafura Sea, about 800 km east of Kupang, East Nusa Tenggara, or about 400 km north of Darwin, Australia, at a sea depth of 300-1000 meters.
The Masela Block contract was signed for a 30-year period on November 16, 1998, and was initially scheduled to expire in November 2028. The contract has since seen a seven-year time compensation addition, plus a 20-year contract extension, extending it until November 15, 2055.
Read: Indonesia's SKK Migas Completes CCS Study for Masela LNG Project
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SKK Migas states that with the completion of CCS study, INPEX is ready to proceed with the LNG project in Masela Block to the Front End Engineering Design (FEED) stage.
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PT Pertamina and Shell Upstream Overseas Ltd have agreed on the acquisition of a 35% participating interest in the Masela Block.
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Indonesian Energy Minister Arifin Tasrif expressed his disappointment about the slow progress of Shell to exit the Masela block management.
Jokowi Reminds Impact of Masela Block on Water Supply in Saumlaki
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President Jokowi talked about the impact of the Lapangan Abadi Liquid Natural Gas (LNG) project in the Masela Block in Tanimbar Islands, Maluku.
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President Jokowi has once again commented on the development of the Masela Block liquid natural gas (LNG) project.
Goodbye Masela
1 Agustus 2020
The development of the Masela Block could be uncertain once more after Shell announced its intention to withdraw.
Japan Delegates Visit Palace; Jokowi Requests Masela Fast-tracked
20 November 2019
Jokowi wants Masela Block's development completed immediately.
Fait Accompli in Masela
20 November 2019
The offer by Tomy Winata's group of its harbor in Maluku as a temporary logistics port for the Masela Block project must be viewed carefully.
