Inpex announced this in a statement on Monday.
In July 2023, the two firms signed the MoU after Shell agreed to sell its participating interest in Indonesia’s Masela PSC, which includes the planned Abadi LNG project, to Pertamina Hulu Energi and Petronas Masela.
In addition to the extension, Inpex also signed a memorandum of understanding on upstream business in Indonesia and Southeast Asia with Pertamina Hulu Energi.
“Through both MoUs, Inpex and Pertamina will continue to collaborate strategically on a wide range of fields with a focus on the Abadi LNG project’s value chain, while Inpex aims to form a cooperative effort with PHE on upstream business in Southeast Asia, with a particular focus on Indonesia,” Inpex said.
Inpex added that it expects both MOUs to contribute to the expansion of its natural gas and LNG business.
FEED to be completed this year
Last month, Inpex received environmental approval for the Abadi LNG project from the Indonesian government.
With this approval in place, Inpex plans to progressively commence preparatory work at the project site, while securing the understanding and cooperation of the Indonesian government, relevant local authorities, and surrounding communities, the firm said.
Inpex Masela, a unit of Inpex, has a 65 percent operating stake in the Abadi project, while Pertamina has 20 percent, and Malaysia’s Petronas owns 15 percent.
The project is estimated to cost about $20 billion, and its annual LNG production volume is expected to reach 9.5 million tons.
Inpex expects to complete the front-end engineering design (FEED) work for the Abadi LNG project by the end of this year, Takayuki Ueda, president and CEO of Inpex, said during the company’s financial results presentation on February 12.
Based on the detailed cost estimates, calculated on the basis of FEED deliverables that are expected to be obtained at the end of 2026, Inpex will review and verify the validity of the EPC bid proposal, he said.
In August 2025, Inpex launched the FEED work for the Abadi LNG project.
A consortium consisting of Technip Engineering Indonesia, Technip Indonesia, and JGC Indonesia is working on the FPSO dual FEED.
Moreover, a consortium consisting of Saipem Indonesia (lead contractor), Tripatra Engineers & Constructors, Tripatra Engineering, and McDermott Indonesia are also working on the FPSO FEED.
Worley SEA Indonesia won the FEED work on the gas export pipeline, as well as the FEED work on subsea umbilicals, risers, and flowlines.
JGC and Technip Energies, and KBR, Samsung E&A, and Adhi Karya (Persero) are working on the onshore LNG (OLNG) plant dual FEED.
