A unit of LNG giant Shell has completed the previously announced sale of its 35 percent stake in Indonesia’s Masela PSC, which includes the planned Abadi LNG project.
Shell Upstream Overseas Services (SUOS), sold the participating interest in the PSC to PT Pertamina Hulu Energi and Petronas Masela.
According to a statement by Shell issued on Wednesday, completion of the sale follows regulatory approval from Indonesia’s Ministry of Energy and Mineral Resources.
Shell previously said the base consideration for the sale is $325 million in cash with an additional contingent amount of $325 million to be paid when the final investment decision (FID) is taken on the Abadi LNG project.
Following completion of the deal, Indonesia’s Pertamina now owns a 20 percent stake and Malaysia’s Petronas has a 15 percent stake in the PSC.
Japan’s Inpex holds 65 percent operating interest in Masela PSC and is the operator of the Abadi LNG project.
Earlier this year, Inpex submitted a revised plan of development to the Indonesian government for the planned Abadi LNG project.
The plan submitted by Inpex Masela incorporates a carbon capture and storage (CCS) component.
The Inpex-operated project has seen many changes over the years and initially, the development of the Masela offshore block involved a floating LNG plant, while it now includes a 9.5 mtpa onshore LNG plant with an estimated cost of about $20 billion.
Inpex said in July it plans to resume project activities, including on-site preparation activities, after completion of the transfer of Shell’s participating interest to the new partners.
The Japanese firm and Pertamina signed a memorandum of understanding on a strategic collaboration to pursue the implementation of the Abadi LNG project.
