PT EMPI Energi Indonesia Opts Out of Abadi LNG Project

Inpex Corporation announced that its affiliate Inpex Masela, Ltd. and Royal Dutch Shell plc's subsidiary Shell Upstream Overseas Services (I) Limited have completed the necessary procedures for the transfer of PT EMP Energi Indonesia(EMPI)’s participating interest in the Masela Block, Arafura Sea, Indonesia (Abadi LNG Project).

The acquisition follows EMPI’s decision to divest its 10 percent participating interest in the Abadi LNG Project.

Following the transaction, Inpex will continue to act as the operator and retain a 65 percent participating interest while Shell will hold the remaining 35 percent, Inpex said in a company release.

EMPI - a leading Indonesian upstream oil and gas company - agreed in November 2009 to take a 10 percent participating interest in the Masela Block.

The Abadi gas field - discovered in 2000 - would be developed in phases. A Floating Liquified Natural Gas plant, with an production capacity of 2.5 million tons - would be constructed for the first phase development. Inpex is now conducting Front End Engineering and Design work to ensure successful start-up of the Abadi LNG Project while pursuing future subsequent development utilizing the gas reserves.