JAKARTA (rambuenergy.com) – The Indonesian Special Task Force for Upstream Oil and Gas Business (SKK Migas) is in talks with PT Pelindo III, the state owned port operator that manages a number of ports in eastern Indonesia including the Tenau port in Kupang, to build shorebase in Kupang, the capital of East Nusa Tenggara province . The shorebase is aimed to support the development and operation of the Masela Block, in the Arafura Sea, located in waters between Maluku and NTT provinces.
“We want Pelindo III to build shorebase in Kupang. The operation of Masela Block is massive, therefore it needs port to support the operation,” Amien Sunaryadi was quoted by detik.com as saying on Friday (Apr. 24)
Masela Block is operated by Inpex Corp of Japan with 65 percent interest, while Shell owns 35 percent. The government is considering to award 10 percent of the interest to Maluku provincial and regency governments. However, the NTT provincial government has submitted request to the central government to own portion of the 10 percent interest to be given to local governments.
The development of shorebase in Kupang could pave the way for the southern most province of Indonesia to own stakes in the giant Masela gas project.
Sunaryardi said there is 20 hectares of areas at around Tenau port area that could be built as shorebase.
The decision to build shore base in Kupang is a viable solution because it is close to Surabaya, the country’s second biggest city and also close to Darwin, the northern town of ustralia. A number of oil and gas projects are also being developed in the Timor gap.
Masela Block is estimated to have gas reserves of 9.18 trillion cubic feet (TCF). The project is expected to start commercial production in early 2019, with existing contract to expire in 2028. Inpex has submitted request to extend the contract beyond 2028 given huge value of investment to develop the project. (email@example.com)