MASELA’S BLOCK : THE LARGEST WORLD’S GAS PROJECT WHICH COVETED BY FOREIGN COMPANY

Source. indonesianindusry
Perhaps, many of us did not know about the disput of Masela’s
block. As a colleger, we should be
concerned with the problems that exist around us. For that, let us
consider the discussion of Masela’s case.
Between The Banda sea and The Arafura sea , West Southeast
Maluku region, there are
gas fields perennial. The Gas fields name’s Masela’s Block. Similarly with the
major source of energy resources owned by another Indonesian, the Masela’s
block also in explore by private parties. Since 16 november 1998, “Inpex corporation” have received
100 percent of the Masela’s block exploration. Inpex exploration
period runs out in 2008 and the provisions to be followed by commercial
production. Entering the final
frontier exploration period in 2008, Inpex get a contract extension, and will
end in 2028. Inpex also filed a development plan Masela to BP Migas (Oil and
Gas Supervisory Agency), which is now renamed SKK Migas (Special Unit of Gas
and Oil). In preparation for its development, Inpex cooperate with “Shell”. The division of
shares, 65 percent for Inpex and 35 percent for Shell. The development plan,
intends to build a shelter or a refinery which will be filled with gas
production. PoD ( Plan
of Development ) suggested Inpex is the construction of liquefied
natural gas in the sea (Floating Liquefied Natural Gas off shore / off shore
FLNG). It takes two years to the end, The Minister of Energy, Darwin Saleh,
approved development plans Masela with FLNG method at sea.
Filing a revision of the Inpex development reaping a variety of responses.
Consequently, there is disagreement among the ministers. The first is a
stronghold of partisan Masela development carried out in accordance with the
request Inpex (floating plant), Sudirman (the Minister of Energy and Human Resources)
and Amien Sunaryadi as the Head of SKK Migas (A Special Unit of Gas and Oil).
The second camp is Rizal Ramli as Coordinating Minister for Maritime and
Resources, which supports when the project conducted on the ground.
Development of offshore refineries, stressed the generosity of costs in the
construction of the refinery. Meanwhile, on shore offers the advantage of scale
national alignments and total profits over the decades ahead for the operation
of the gas. The intention of having a national alignments for the development
of the Masela using domestic contractors who have had various experiences in
building a refinery on land. Potential mix DCL (total domestic content) could
reach 35 percent of the total project, equivalent to 5.6 billion USD. The
development of floating LNG, using domestic contractors have the experience and
lack of knowledge DCL can only produce about 10 percent of the project, valued
at USD 2.2 billion, so the rest are foreign plots.
Protracted development decisions Masela start a negative impact. Inpex
Corporation and Shell Corporation, as operator of the gas fields it plans to
cut the number of employees. Amien Sunaryadi as chairman SKK oil and gas,
received a letter from Inpex on March 11, 2016, concerning plans job cuts of up
to 40 percent of the total employees in the Inpex Masela about 350 to 400
people. A similar appeal was also made by Shell. President Director of Shell
even been informed of the technical to quickly find a new job. “Because
until March 10, there has been no decision on the revision propusal Masela
regional development that has been proposed in early September last year.”
Amien said when giving his official statement at the office of SKK Migas,
Jakarta, March 15, 2016.
Wednesday, March 23, 2016, Jokowi said the decision to undertake the
development of the Masela block in the land. Hearing this decision,
inter-ministerial debate subsided. Support continues to flow over the enactment
of the processing plant is on shore, although the performance is sluggish by
the Parliament. The debate which region will be selected for the construction
of refineries, into new problems. Many areas are scrambling to become a
construction site. SKK Migas urged to stop this debate, and leave the decision
to the party in charge of research.

 Inpex and Shell will continue to
manage Masela and revise the development plans which had previously been
proposed to SKK Migas. Plans job cuts are not enacted. Although, onshore
refinery construction is considered not worth the investment because the rates
of return on investment is low. The development is being experienced by
Indonesia does require special injection from investors. However, we should not
be lulled by the help. Masela case reminds us how rich our country, to be a
bone of contention. But is not matched by the wealth of technology to treat.
It’s unfortunate. Based on the above presentation, the need for what steps
should be done on a case such as the increase in technology, educate the
population about the importance of technology and the open attitude of the change,
also the distribution of human resources quality. (ACM/Subdept Research and
Development)

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