Japan's Inpex and joint venture partner Shell have extended a memorandum of understanding (MOU) with Indonesian utility PLN concerning long-term liquefied natural gas (LNG) supply. They have also expanded the MOU to incorporate joint studies in hydrogen, as well as ammonia, and CCS in relation to the proposed Abadi LNG project at the Masela Block offshore Indonesia.
Malaysia and Indonesia were the first countries in Southeast Asia to announce that carbon capture and storage (CCS) would play a role in decarbonising their industrial sectors. BP (LON:BP) in Indonesia, and Petronas in Malaysia, announced landmark projects in the oil and gas industry. However, while Indonesia has started having the right conversations around CCS, neighbouring Malaysia, and possibly even Thailand, appear to be making more progress within the region.
Indonesia has an ambitious target to almost double natural gas production from 6.5 billion cubic feet per day (cf/d) to 12 billion cf/d by 2030. Hitting that goal means giant undeveloped gas projects, such as Inpex’s Masela and Chevron’s IDD, must proceed rapidly.
Unlike most governments in the economically developed Western world, Indonesia’s leaders are crying out for more upstream oil and gas investment. However, even as demand is projected to rise up to four times by 2050, Southeast Asia’s biggest economy is struggling to convince energy investors to come.
UK-based Harbour Energy (LON:HBR) is aiming to develop more fields in its Natuna Sea A Block, that is a major gas supplier to Singapore. Harbour is seeing demand surge from the city state for piped supplies from its Indonesia block as global liquefied natural gas (LNG) spot prices remain elevated.
UK-based Harbour Energy (LON:HBR) is close to finalising a supply deal with Vietnam for natural gas from its proposed Tuna gas development in the Natuna Sea offshore Indonesia.
The European Investment Bank (EIB), the bank of the European Union (EU) and the world’s largest multilateral lender, said it is ready to invest up to €1 billion (US$998 million) each year in green and sustainable development projects in Indonesia.
Indonesia-focused oil and gas company Conrad Asia Energy is preparing an initial public offering (IPO) on the Australia Stock Exchange to raise some A$45 million (US$30.3 million) as it seeks to develop its Indonesia upstream business.
Indonesia’s Medco Energi (IDX:MEDC) is open to the possibility of joining the Indonesian government consortium that is considering acquiring Shell's (LON:SHEL) 35% share in the Abadi liquefied natural gas (LNG) project in the Masela Block offshore Indonesia that is led by Japan’s Inpex (TYO:1605).
Indonesia’s national oil company Pertamina has signed an agreement on a joint rig-to-reef pilot project with South Korea’s KHAN covering the Attaka offshore blocks in East Kalimantan, Indonesia.
Indonesia may form a consortium to buy Shell’s (LON:SHEL) 35% equity in the proposed Abadi liquefied natural gas (LNG) project in the Masela Block offshore Indonesia that is led by Japan’s Inpex (TYO:1605), the country’s investment minister said Thursday.
Harbour Energy is expected to start gas production from its Andaman II Block offshore Indonesia in 2028, according to a senior Indonesian government official.
Malaysia’s national oil company Petronas is considering acquiring further upstream acreage offshore Indonesia’s Aceh province as it seeks to develop more gas projects in the Southeast Asian nation. Significantly, more incentives are expected to be offered to encourage exploration investment.
Indonesia is bracing for protests this week after the government raised fuel prices by more than 30% to curb soaring subsidies, as higher costs hit households and small businesses across the archipelago.
US giant ExxonMobil (NYSE:XOM) has met with Indonesia’s President Joko Widodo to talk about the importance of a lower carbon future and ways that Indonesia can continue to access reliable and cost effective sources of energy.
UK-listed Harbour Energy (LON:HBR) has cautioned that “permeability was on the low side of expectations” at its play-opening deepwater Timpan-1 exploration well offshore Indonesia in the North Sumatra basin.
ExxonMobil (NYSE:XOM) has denied rumours about the US major seeking to divest its Indonesia assets.
Rumours have surfaced again about ExxonMobil (NYSE:XOM) potentially seeking to divest its Indonesia assets. ExxonMobil operates the giant Cepu Block, which is Indonesia’s largest producing oil project.
The cost to add carbon capture and storage (CCS) to the proposed Abadi liquefied natural gas (LNG) project in the Masela Block offshore Indonesia that is owned by Japan’s Inpex (TYO:1605) and Shell (LON:SHEL) is expected to cost over $1 billion.
Indonesian upstream regulator SKK Migas appears to be getting frustrated over the slow divestment process for Chevron’s (NYSE:CVX) share in the giant Indonesia Deepwater Development (IDD).
Japan has reportedly offered to give Indonesia a loan to buy Shell’s (LON:SHEL) 35% equity in the proposed Abadi liquefied natural gas (LNG) project in the Masela Block offshore Indonesia that is led by Japan’s Inpex (TYO:1605). The move is aimed at kickstarting the long delayed development.
BP (LON:BP) has opened a pre-qualification tender for the provision of onshore front-end engineering and design (FEED) services for a carbon capture and storage (CCS) project at its Tangguh liquefied natural gas (LNG) complex in Indonesia.
Ageing coal-fired power is increasingly replaced by renewable energy generation in the US and Europe. However, transitioning away from thermal coal will be complex and slow for Asian nations, particularly India and China, which make up 70% of global coal demand and face a steep rise in power demand.
Indonesian upstream regulator SKK Migas has confirmed that Repsol’s (BME:REP) Kali Berau Dalam (KBD) gas discovery, initially thought to be the country’s biggest find in 18 years, is significantly smaller than expected, putting the mega project in doubt.
Japan’s Inpex has reiterated that it is targeting start-up of the stalled Abadi LNG project in the Masela Block offshore Indonesia in the early 2030s.