Inpex is advancing its $19 billion Abadi LNG project in Indonesia, targeting a Final Investment Decision (FID) in 2027. The project will develop the Abadi gas field, holding over 10 trillion cubic feet of reserves, via a 9.5 million tonnes per annum LNG facility on the Tanimbar Islands, with an additional 150 million cubic feet per day of gas allocated for the domestic market.

Project Development and FEED Progress

The project entered the Front-End Engineering and Design (FEED) phase in August, which is progressing as planned. This technical initiative encompasses four major work scopes: the floating production, storage and offloading vessel; subsea umbilicals, risers and flowlines; the gas export pipeline; and the onshore liquefaction plant. FEED work for these packages began in September.

Initiatives for Timely FID

Inpex is concurrently working on three other key initiatives to reach FID. The second initiative focuses on securing necessary permits and approvals from the Indonesian government, including environmental approvals and a site for the onshore plant, with procedures reported to be on track. The third initiative involves commercial aspects, such as project financing and LNG marketing activities, with discussions already underway with financial institutions and potential buyers. The fourth initiative centres on negotiations with the Indonesian government to ensure the project's economic viability, with preliminary discussions aimed at enabling an FID soon after FEED completion.

Drilling Preparations and Contract Requirements

Inpex has launched a prequalification tender for inspection services related to the deepwater mobile offshore drilling unit (MODU) for the development drilling campaign. The inspection scope includes a condition survey, HSE review, and interface engineering, divided into pre-award and pre-mobilisation phases, as part of an assurance program to ensure the MODU's reliability and technical suitability. The development plan involves around 18 directional wells from five subsea drill centres, initially targeting the gas-rich northern part of the structure in water depths of 400 to 800 meters. Prospective bidders must demonstrate at least 10 years of relevant deepwater rig inspection experience, and the contract mandates a minimum local content (TKDN) of 5%.

Project Timeline and Ownership

First production from the Abadi LNG project is anticipated in the 2030s. Following Shell's divestment of its 35% interest in July 2023, the current partnership in the Masela production sharing contract consists of operator Inpex (65%), Pertamina (20%), and Petronas (15%).