Inpex Receives Environmental Permit for Abadi LNG Project in Masela Block

Japan's oil and gas exploration firm Inpex Corporation announced Monday that its affiliate Inpex Masela Ltd. has received an environmental permit from the Indonesian government for the Abadi liquefied natural gas (LNG) Project in the Masela Block, Arafura Sea, Indonesia.

The Abadi LNG Project is now being prepared by Inpex for development utilizing a Floating LNG (FLNG) concept, the company said in a press release. The approval of the Environmental and Social Impact Assessment, known locally as AMDAL (Analisis Mengenai Dampak Lingkungan), moves the project a step closer towards development.

In December 2010, the Indonesian authorities granted its approval for Inpex's plan of development for the Abadi project, which includes a FLNG with a capacity of 2.5 million tons per year of LNG. Inpex is currently conducting front end engineering and design works for the project.

Inpex holds a 65 percent operating interest in the Masela Block, while the remaining 35 percent is held by Royal Dutch Shell plc. Last June, Inpex and Shell acquired the 10 percent share belonging to Indonesia's upstream oil and gas company PT EMP Energi Indonesia (EMPI) after the latter agreed to divest its 10 percent participating interest in the Abadi LNG Project.

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