INPEX has commenced front end engineering and design (FEED) work for the Masela-operated Abadi LNG project offshore and onshore eastern Indonesia, awarding three contract packages for the offshore facilities development.

Project Location and Scale

The Abadi gas-condensate field is located in 400-800 meters of water, positioned 170-180 kilometers southwest of the Tanimbar Islands. INPEX and its partners PT Pertamina Hulu Energi Masela and PETRONAS Masela are targeting annual production volumes of 9.5 million tons from this large-scale LNG project. 

The FEED work scope involves reviews and definitions of the facilities that will produce and process the wellstream from the field and the LNG plant onshore. The offshore production facilities will also produce up to 35,000 barrels per day of condensate.

Development Timeline and Government Approvals

An initial development plan received approval from the Indonesian government in 2019. However, INPEX decided to introduce carbon capture and storage (CCS) technology and submitted a revised development plan to the Indonesian government in April 2023, which received approval in December 2023. 

All three contract packages awarded for the offshore facilities include studies related to carbon capture and storage, reflecting the project's commitment to incorporating CCS technology into its operations.

FPSO FEED Competition Structure

INPEX has implemented a dual FEED approach for the FPSO package, with two contractor consortia working in parallel but separately. The engineering, procurement and construction (EPC) contract that follows will be issued to the consortium that delivers a technically and commercially superior FEED solution. 

The first consortium for the FPSO FEED competition consists of PT Technip Engineering Indonesia as lead contractor, PT Technip Indonesia, and PT JGC Indonesia. The second consortium includes PT Saipem Indonesia as lead contractor, PT Tripatra Engineers & Constructors, PT Tripatra Engineering, and PT McDermott Indonesia. 

These consortia are responsible for reviewing and defining the specifications of the offshore production facilities as part of their FEED duties.

Additional Offshore Work Scopes

PT Worley SEA Indonesia will manage the two other offshore FEED work scopes for the project. The company will perform the review and design of the subsea umbilicals, risers and flowlines, as well as the gas export pipeline from the FPSO to the LNG complex.

Strategic Market Positioning

INPEX states on its website that the project takes advantage of the strategic location of this large-scale LNG project, which is one of few in the Asia Pacific region. The company plans to widely market the LNG to buyers in Indonesia where demand is expected to grow, as well as to traditional LNG buyers in East Asia and emerging buyers in Southeast Asia, South Asia and elsewhere.