The massive gas project at the Abadi Field, Masela Block, Maluku, has officially entered the Front-End Engineering Design (FEED) stage, which focuses on technical engineering design for the Onshore LNG (OLNG) facility.

Inpex Corporation President and CEO Takayuki Ueda revealed that the project, valued at approximately US$ 20.94 billion or around Rp 342.56 trillion (based on an exchange rate of Rp 16,359 per US$), is projected to contribute about US$ 150 billion or Rp 2,543 trillion to Indonesia’s Gross Domestic Product (GDP) and create 70,000 jobs over the next 30 years.

“Based on projections, this project will contribute approximately US$ 150 billion to Indonesia’s GDP and generate 70,000 jobs within a 30-year period,” Ueda stated during the inauguration of the FEED stage for the Abadi Gas Field, Masela Block, in Jakarta, Thursday (August 28, 2025).

He emphasized that commencing the FEED phase marks a critical milestone in the company’s journey to strengthen energy resilience and sustainability in Indonesia.

Additionally, this project will be the first energy development in Indonesia to implement Carbon Capture and Storage (CCS) technology from the start of production.

“CCS will help drive Indonesia’s decarbonization efforts while ensuring a stable energy supply for the nation,” he added.

The Abadi Field in the Masela Block is one of Indonesia’s largest deepwater gas reserves. It is located approximately 160 kilometers offshore from Yamdena Island in the Arafura Sea, at depths ranging from 400 to 800 meters. The gas potential of the Abadi Field is estimated at 6.97 trillion cubic feet (TCF).

The Production Sharing Contract (PSC) for Masela, signed in 1998 and extended until 2055, has the potential to produce 9.5 million metric tons per annum (mtpa) of LNG and 150 million standard cubic feet per day (MMSCFD) of pipeline gas. Additionally, the field is expected to produce around 35,000 barrels of condensate per day (bpd).

The development concept, which involves a high-complexity and high-risk greenfield project, includes deepwater drilling, subsea facilities, an FPSO (Floating Production Storage and Offloading) unit, and an onshore LNG plant. This presents both major challenges and opportunities for PHE and its partners to realize the project.

The Masela Block is also set to produce clean LNG through the application of CCS technology, supporting the government’s efforts to reduce carbon emissions and promote sustainability during the energy transition era.

Inpex Masela Ltd holds the largest Participating Interest (PI) in the Masela Block, amounting to 65%.

Previously, Shell Upstream Overseas Services owned 35% of the shares but decided to exit the massive gas project in Maluku.

As of July 2023, Shell’s 35% stake has been acquired by PT Pertamina Hulu Energi through its subsidiary PT Pertamina Hulu Energi Masela (PHE Masela) with a 20% share, while Petronas took the remaining 15%.