Japan’s Inpex Corporation with its joint venture partner Shell, signed an amendment and extension to the Masela block production sharing contract (PSC).
Inpex said the amendment, signed through its Inpex Masela unit, includes a 7-year additional time allocation and a 20-year extension for the Abadi LNG project with Indonesia’s upstream oil and gas regulator SKK Migas.
In its statement, Inpex said the statement marks the execution of a formal agreement on the PSC terms previously agreed and announced as part of the approval of the Abadi LNG project’s revised plan of development by Indonesia’s government.
Abadi LNG project is the first large-scale integrated LNG development project operated by Inpex in Indonesia.
Inpex noted it will continue to work with its partner Shell to deliver an onshore LNG project as it prepares to start the front-end engineering design (FEED). Once completed the project is expected to produce approximately 9.5 million tons of LNG per year.