The absence of Royal Dutch Shell executives from a recent meeting in Tokyo between Indonesian Mines and Energy Minister Ignasius Jonan and Japanese majority partner Inpex appears to confirm reports that the Anglo-Dutch oil giant has withdrawn from Southeast Asia’s largest gas field venture.
The US$20 billion Masela project is scheduled to come on stream by 2027, but with Shell staying tight-lipped on its intentions and the government and Inpex avoiding the subject it is clear that despite progress in contract talks further delays are inevitable.
Industry sources say it is normal for upstream regulator SKKMigas to deal only with the operator of the field, but for a deal of this magnitude a 35% stakeholder like Shell would almost certainly have been expected to be present.
“It looks from this that they’re out,” says one analyst, noting Shell’s silence and its penchant for trying to avoid embarrassing host governments, particularly in Indonesia where it has a flourishing petrol station and retail business.
The meeting between Jonan and Inpex chief executive Takayuki Ueda did appear to clear away two main hurdles, with the government finally relenting on the $20 billion project cost — $4 billion more than it was holding out for — and Inpex agreeing to the government’s cherished 50% profit-sharing split.
On the vexed issue of capital cost, it is understood Jonan finally prevailed over Deputy Energy Minister Arcandra Tahar, who has been responsible for guiding the project so far. Tahar spent 20 years in Houston, Texas, working for a company specializing in offshore development.
Hard up against the maritime border with Australia, the Masela block contains a proven 18.4 trillion cubic feet of gas, but possible and probable reserves could push that to more than 40 trillion cubic feet, making it one of Indonesia’s biggest discoveries.
The final Plan of Development (POD) is to be signed on the sidelines of the G20 summit in Osaka on June 28-29, ending two decades of often fraught talks over the future of the rich Abadi field in the southern reaches of the Arafura Sea.
Inpex and Shell had always planned on Masela being an offshore project, using new floating liquefied natural gas (FLNG) technology. But President Joko Widodo insisted on a processing plant on remote Tanimbar Island to spur development across eastern Indonesia.
The resulting stalemate between the investors and the government – and the election of Widodo to a second term – led to speculation that authorities were reconsidering the FLNG option just to get the project off the ground. But the president has persisted.
Building the 9.5 million-ton-a-year onshore facility means laying a 180-kilometer pipeline from the Abadi field to Tanimbar, made costly by having to cross a 3,000-meter-deep trench marking the active fault line that skirts the southern edge of the Nusa Tenggara island chain.
The pipeline may be only one of the challenges. Inpex’s reputation for project management took a heavy hit with Western Australia’s Icthyius venture, which saw costs balloon from $34 billion in 2012 to $45 billion when it finally went into production in 2018.
Gorgan, another onshore LNG project on Barrow island, 50 kilometers off the Pilbara coast of Western Australia, ended up costing joint venture partners Chevron, ExxonMobil and Shell more than $90 billion, nearly four times the original estimate.
But analysts say construction began at the top of the market when costs were historically high and Chevron had to compete with several other projects for skilled manpower. The result was further delays, compounded by unhelpful government regulatory changes.
Shell’s reported decision to sell its 35% stake in Masela has raised questions about whether Inpex will be seeking a new partner to share both the costs and also the risks inherent in developing a green field so far from any supporting infrastructure.
State oil company Pertamina, which has taken over a slew of producing fields over the past two years, including East Kalimantan’s Mahakam block, is an unlikely candidate for such a venture.
With Chevron’s 200,000-barrel-day oil field in northern Sumatra as the next takeover target, the state company has already fallen far behind in its efforts to maintain production at Mahakam because of a shortage of finance to drill new wells.
Asia Times has learned from knowledgeable industry sources that the presentation Shell gave to Jonan and Vice President Jusuf Kalla in 2015 clearly laid out the alternative road maps, all linked to Indonesia’s 2019 electoral cycle.
Under an FLNG schedule, the company said, final investment decisions (FID) and engineering procurement construction (EPC) would be completed during Widodo’s first term and the facility would be on stream during his second 2019-2024 term.
For the onshore option, Shell estimated that front-end engineering design, known as FEED, would be delayed a minimum of five to seven years, but possibly 12-14 years or more, because the existing technology could not do the job.
Shell executives said privately that the onshore option would result in a 15-year delay, or three electoral cycles. Corporate policy is to link the two because of a rule of thumb that has FID achieved in the second or early in the third year of a presidential term so construction can be well under way at election time.
Apparently because of a long history of shifting regulations and other uncertainties, Indonesia falls in Shell’s “significant risk category” where change-of-government rules apply.
It is for that reason the firm may have put Masela in the “too difficult” basket and decided to walk away.
Outstanding quest there. What happened after?
Good luck!
I’m really inspired together with your writing skills as neatly as with
the structure on your blog. Is this a paid subject or did you customize it your self?
Anyway keep up the nice quality writing, it’s rare to
see a nice blog like this one these days..
Wonderful work! This is the type of information that should be shared around the net. Shame on the search engines for not positioning this post higher! Come on over and visit my web site . Thanks =)
you are in point of fact a excellent webmaster.
The web site loading speed is incredible. It sort of feels that you are doing any unique trick.
In addition, The contents are masterwork. you have performed a magnificent activity in this matter!
Hello there, I found your blog by the use of Google whilst searching for a similar subject, your website
got here up, it seems to be good. I’ve bookmarked it in my google bookmarks.
Hi there, just become aware of your blog thru Google, and found that it’s really informative.
I am gonna be careful for brussels. I’ll appreciate in case you proceed this in future.
A lot of people shall be benefited out of your writing. Cheers!
My family every time say that I am killing my time here at web,
except I know I am getting know-how all the time by reading thes good articles.
Everyone loves what you guys tend to be up too. This kind of clever work and coverage!
Keep up the wonderful works guys I’ve included you guys to my
blogroll.
What’s up, yes this paragraph is genuinely nice and I have learned lot of things from
it about blogging. thanks.
Hi there I am so excited I found your site, I really found you
by mistake, while I was looking on Aol for something
else, Anyways I am here now and would just like to say thanks a lot for a remarkable post and a all round enjoyable blog (I also love the theme/design), I don’t have time to read through it all at the
minute but I have saved it and also added your RSS
feeds, so when I have time I will be back to
read much more, Please do keep up the awesome work.
I do not even know the way I ended up here, however I believed this post used to be
good. I don’t recognize who you’re but definitely
you are going to a well-known blogger in case you aren’t already.
Cheers!
Hello there, I found your blog by means of Google whilst looking for a related subject, your website got here up,
it seems great. I’ve bookmarked it in my google bookmarks.
Hello there, simply changed into aware of
your blog via Google, and located that it is really informative.
I am going to be careful for brussels. I will appreciate if you proceed this in future.
Numerous people will likely be benefited out of your writing.
Cheers!
I am really grateful to the holder of this web page who has shared this
enormous post at at this time.
This article gives clear idea in support of the new users of blogging,
that truly how to do running a blog.
Thanks for your personal marvelous posting! I quite enjoyed
reading it, you might be a great author. I will ensure that I bookmark your
blog and will eventually come back later on. I want to encourage one to continue your great work, have a nice afternoon!
5) Show Respect: If you expect respect from others, you need to treat others with respect too.
Respect can be reflected in the way one talks and behaves.
Always speak in a loving manner and refrain from speaking harshly.
Since the conference was canceled and the project cannot be
completed, there is no need to perform the Closing processes.
B. Since conferences are held several times a year, preparing the vendor booth is considered an ongoing operation and doesn’t meet definition of
a project in A Guide to the PMBOK.
hair extensions Each of these types have different causes behind its occurrence.
However, causes which are common include poor nutrition, diseases
(like diabetes and lupus), hormonal changes, scalp infection, medical treatments, and hair treatments.
Baldness may also be caused due to what is known as trichotillomania,
which is defined as an irresistible urge to pullout your own hair..hair extensions
human hair wigs Well, it helps if we come in the right way, that is, maintaining the illusion by showing up at
the door, rather than the kids standing outside and watching me walk up the block.
We park far away so the kids won see us getting out
of our car and arranging our skirts it really ideal to knock on the door and have
little Skyler Eva open it up. She pretty much goes nuts, and then starts listing off every princess item she has with your face on it.human hair wigs
360 lace wigs This is because it has been reported that due to differing contraction rates of the metal
heating element and Quartz or boro glass, the metal could contract faster or more and break the banger or q nail.5) you can use the titanium tool with carb cap from high five,
not as expensive. Also don buy Quartz nails from high five,
they are cheap. I bought 2 and it was super weird how they
broke.360 lace wigs
lace front wigs Swisher made his MLB debut in 2004 for the Athletics, playing in 20
games. Retaining his rookie status for 2005,[a] Swisher hit 21 home runs and recorded 74 RBI in 131 games for the 2005 Athletics.
He finished 6th in the American League Rookie of the Year voting.lace front
wigs
tape in extensions Throughout the video, she tries to communicate the conflicting
emotions of jealousy, continued desire,
and anger towards this man who still clearly holds her heart.
In the process, she spurns the previously welcome advances of the Prince Regent
(Laurie), and repels him, to his embarrassment. Lennox’s character consumes glass after ショートボブ glass of champagne and grows
ever more agitated, until she finally throws herself at
Malkovich’s character, to the shock and amusement of the partygoers.tape in extensions
human hair wigs Louis Werner helped Krugman throughout the planning, even telling him where the robbers should park.
A Ford Econoline 150 van would be used to transport the cash and a “crash car” would accompany the van to run vehicular interference
should the plot be interrupted and a police chase ensue. Burke decided on Tommy DeSimone,
Joe Civitello Sr., Louis Cafora, Angelo Sepe, Tony Rodriguez, Joseph M.human hair wigs
tape in extensions Situational and verbal irony is often intentionally used as emphasis
in an assertion of a truth. It is that which results
from recognizing the oddness or unfairness of a given situation, irrespective of whether
the outcome is positive or negative. Sometimes, the outcome may be very
amusing in such unusual circumstances tape in extensions..
ウィッグ ボブ コスプレ カツラ 通販 ショートボブ ポニーテール
ショートボブ ウィッグ 激安
Oh my goodness! Impressive article dude! Many thanks, However I am having troubles with your RSS.
I don’t understand why I am unable to join it.
Is there anybody having similar RSS issues? Anybody who knows the solution can you kindly respond?
Thanx!!
An interesting discussion is definitely worth comment.
There’s no doubt that that you ought to publish more on this subject,
it may not be a taboo matter but typically folks don’t discuss these
topics. To the next! Many thanks!!
Howdy, i read your blog from time to time and i
own a similar one and i was just curious if you get a
lot of spam comments? If so how do you reduce it, any plugin or anything
you can advise? I get so much lately it’s driving me mad so any help is very much appreciated.
What a stuff of un-ambiguity and preserveness of valuable experience concerning unexpected feelings.
Saved as a favorite, I really like your blog!