Shell ready to develop Masela Block: Hatta
Thu, June 7 2012 16:59 | 1620 Views
Jakarta (ANTARA News) - Chief economic minister Hatta Rajasa stated Royal Dutch Shell was prepared to develop the Masela Block in the Arafuru waters in Maluku in order to boost production of liquefied natural gas (LNG).
Chief economic minister Hatta Rajasa (FOTO ANTARA)
"The development of Masela Block, with the addition of a floating LNG facility of 2.5 million metric tons per annum (MTPA) capacity, would run parallel with the development of phase one. With this, the overall capacity will be increased," he said after receiving Shell representatives here on Thursday.
Hatta expressed hope with the development of the Masela Block, LNG production would be enough to meet national gas needs until 2018.
"We have to produce large amount of LNG to meet domestic needs," he said.
Hatta stated Shell was likely to invest around US$10 billion in the project.
He added the energy company from the Netherlands would also continue to develop infrastructure facilities in the country, such as filling stations.
At present, Shell has 30 percent stake in the Masela Block, while PT Energi Mega Persada Tbk (ENRG) controls 10 percent.
The majority stake is still held by Japanese oil and gas company Inpex, at 60 percent.
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