Japan's Inpex weighs Indonesia hiring spree for $20bn LNG project
Energy group prepares for final investment decision on Abadi gas field
The Abadi project involves drilling for gas offshore and sending it to onshore facilities via pipeline. (Inpex)
KOKI IZUMI
July 9, 2025 02:26 JST
JAKARTA -- Japanese energy group Inpex is looking to hire thousands of workers in Indonesia as it moves closer to building the estimated $20 billion Abadi liquefied natural gas project.
The project, being pushed forward by a consortium led by Inpex, is centered on a gas field off the coast of Yamdena island in Maluku province, about 2,700 kilometers east of the capital Jakarta.
Energy group prepares for final investment decision on Abadi gas field
asia.nikkei.com
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May 8 2011
Abadi Gas Field
The Abadi gas field is situated in the 3,221km² Masela block in the Arafura Sea, Indonesia. The field lies in water
Water Depth
984-3,281ft
Project Type
Liquefied natural gas and condensate field
Reserves
10 trillion cubic feet of natural gas
Discovery
2000
The Abadi gas field lies in the Masela block in the Arafura Sea, Indonesia.
The Abadi field will be developed using a subsea production system and a floating LNG facility.
The Ramform Challenger marine vessel was used to carry out the 3D seismic survey at the field.
The Abadi gas field is situated in the 3,221km² Masela block in the Arafura Sea, Indonesia. The field lies in water depths ranging 984ft-3,281ft.
Inpex Masela, a subsidiary of Japan-based oil and gas company Inpex, operates the field. Inpex earlier owned a 90% interest in the field but in July 2011 transferred 30% to Shell. Abadi is a large-scale project and Inpex invited Shell Upstream Overseas Services as a strategic partner to use its expertise in floating LNG technology. PT EMP Energi Indonesia owns the remaining 10%.
A production sharing agreement for the field was signed in November 1998, covering 30 years. The plan for development of the field was submitted in September 2008 to BPMigas, the Indonesian Government authority responsible for oil and gas upstream business, and the same was approved in December 2010. First production of gas is expected in 2018 with an initial output of 2.5 million tonnes of LNG a year and 8,400 barrels per day of condensate.
In November 2012, the Indonesian subsidiary of Wood Group was commissioned to conduct front end engineering and design (FEED) of subsea production facilities for the development of the LNG project. The FEED study is expected to be completed in one year. The scope of the FEED contract includes detailed engineering for subsea, umbilical, riser and flowline (SURF) works.
Discovery
A 2D seismic survey was carried out in the block using marine vessel Geco Rho between February and March 1999.
The field was discovered by the Abadi-1 exploration well, which was drilled between October and December 2000.
The Abadi field was discovered by the Abadi-1 exploration well, which was drilled between October and December 2000 by the Energy Searcher rig. The confirmed presence of gas and condensate was the first discovery of crude oil and natural gas in the Arafura Sea.
Between July and September 2001, a 3D seismic survey was carried out using the PGS Ramform Challenger marine vessel. In 2002, two appraisal wells, Abadi-2 and Abadi-3, were drilled to examine the extent of reserves of the field. Abadi-2 was drilled by the Energy Searcher rig and Abadi-3 was drilled by the Ocean General rig.
Four more wells drilled between May 2007 and June 2008 confirmed the presence of significant gas reserves.
Abadi geology and reserves
The Abadi field reservoir is of the Middle Jurassic Plover Formation and located at depths ranging between 3,700m and 3,900m. The reservoir contains shallow-marine, highly mature, quartzose sandstones.
The field is estimated to contain ten trillion cubic feet of natural gas reserves.
Field development
The field will be developed in phases using a subsea production system and a floating LNG facility (FLNG). About 18 directional production wells are expected to be drilled from five subsea drilling centres. Initial development will be carried out in the northern part of the field, where most of the reserves are concentrated.
The exploration well is expected to be drilled in 2013.
TIn January 2013, Inpex awarded the FEED contract for the floating LNG (FLNG) of Abadi gas field to JGC and PT Saipem Indonesia Group.
The two groups will separately conduct FEED studies on the FLNG. The company which will provide the winning FEED design will be awarded the engineering, procurement and construction (EPC) contract for the FLNG.
The FEED studies are scheduled for completion in 2013. The engineering, procurement and construction contracts are expected to be awarded between 2014 and 2018.
Floating LNG facility
The floating LNG facility will feature the integration of proven technologies such as FPSO, baseload onshore LNG plants and LNG carriers. It will include an LNG loading plant, an LNG storage tank and a loading facility similar to that available on a conventional FPSO.
"Abadi project partners will invest $19.6bn in the FLNG facility."
The floating LNG concept was chosen for the field because it reduces the environmental impact of constructing an onshore facility in terms of the land, harbour and infrastructure facilities required.
The MetOcean conditions at the field also favoured the design and operation of the floating LNG facility. In addition, the concept is expected to reduce the costs incurred and the project lead time.
The project partners are expected to invest $19.6bn in the facility, which will be installed about 170km south-west of the city of Saumiaki.
Production
The feed gas produced will be collected through the subsea drilling centres and transported to the floating LNG through flexible production risers. The gas will be processed and liquefied on the floating LNG. The LNG and condensate will be stored in the floating LNG, and offloaded at regular intervals through LNG carriers.
The Abadi gas field is situated in the 3,221km² Masela block in the Arafura Sea, Indonesia. The field lies in…
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Inpex gets approval for Abadi LNG project in Indonesia
By
LNG Prime Staff
December 6, 2023
Japan’s Inpex said it has received written approval for the revised plan of development for the Abadi LNG project in Indonesia.
Earlier this year, Inpex Masela on behalf of the joint venture with LNG giant Shell
submitted the revised plan to the Indonesian government, adding a carbon capture and storage (CCS) component.
“This marks the official approval of the authorities for the revised POD,” Inpex said in a statement.
In October, Shell
completed the sale of its 35 percent stake in Indonesia’s Masela PSC, which includes the planned Abadi LNG project, to Pertamina Hulu Energi and Petronas Masela.
Indonesia’s Pertamina now owns a 20 percent stake and Malaysia’s Petronas has a 15 percent stake in the PSC.
Inpex holds 65 percent operating interest in Masela PSC and is the operator of the Abadi LNG project.
The Japanese company said in the statement that the project is the first in which CCS-related costs are eligible for recovery based on the PSC scheme that governs crude oil and natural gas upstream operations in Indonesia.
Inpex said the approval of the revised POD paves the way for the firm and its partners to “fully mobilize the project as a clean project in support of the energy transition.”
Resuming activities
The Inpex-operated project has seen many changes over the years and initially, the development of the Masela offshore block involved a floating LNG plant, while it now includes a 9.5 mtpa onshore LNG plant with an estimated cost of about $20 billion.
Going forward, Inpex and its partners will pursue the revision of the PSC to incorporate CCS into the contractual scope of work and resume project operations including on-site activities and prepare for FEED work, the firm said.
“Thereafter, the JV will implement the project with the aim of reaching a final investment decision (FID) and production startup at an early stage after completing the necessary preparations including marketing and financing activities,” Inpex said.
Inpex previously said it aims to reach FID in the “latter half of the 2020s and commence production in the early 2030s.”
The project would become Inpex’s second self-operated, large-scale natural gas development project following
the Ichthys LNG project in Australia.
Japan's Inpex said it had received written approval for the revised plan of development for the Abadi LNG project in Indonesia.
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