Inpex Submits Revised POD for Abadi Project Off Indonesia, Using a FLNG

Japan's Inpex Corp. announced Thursday that it has submitted to the Indonesian Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) a revised plan of development (Revised POD) of the Abadi gas field in the Masela Block, Arafura Sea, Indonesia (Abadi LNG Project), as a result of a greater volume of natural gas reserves being confirmed, among other factors. With the cooperation of strategic partner Shell, Inpex is preparing for the development of the Abadi gas field as Operator through its subsidiary Inpex Masela, Ltd. The Revised POD envisions the adoption of a Floating LNG (FLNG) plant with an annual LNG (liquefied natural gas) processing capacity of 7.5 million tons.


The initial plan of development (POD-1) was based on developing the Abadi gas field in stages and targeted the deployment of an FLNG plant with an annual LNG processing capacity of 2.5 million tons as the first stage of development. POD-1 was approved by the Indonesian government in 2010. Between November 2012 and November 2014, Inpex conducted Front End Engineering and Design (FEED) works for both SURF (Subsea, Umbilical, Riser and Flowline) and the FLNG plant based on POD-1.

Based on evaluations of three appraisal wells drilled between June 2013 and April 2014 (the drilling campaign), Inpex confirmed the presence of a greater volume of Abadi gas reserves, which was certified by Indonesian authorities.

In parallel with subsurface evaluations after the drilling campaign, Inpex also conducted studies to assess the optimal development scenario taking into account the updated Abadi gas reserves. These studies included a large scale FLNG technology study (Pre-FEED) where Inpex confirmed the technical developments and improvements in larger scale FLNG made in recent years.

Taking these findings into account, Inpex conducted a comprehensive review of POD-1 including technical and economic evaluations. As a result, the company concluded that development by a 7.5 million ton-class FLNG is the optimal solution to replace the initially planned development in stages, and has submitted the Revised POD to Indonesian government authorities accordingly.

Moving forward, Inpex will undertake the required procedures in a timely manner to obtain the Indonesian government’s approval for the Revised POD, and propel the project forward in partnership with Shell Upstream Overseas Services (I) Limited with the aim of launching FEED work for the development of the Abadi gas field.

Seeking support from the Indonesian government and other stakeholders, Inpex will continue to make every effort aiming for the timely commencement of commercial production of the Abadi LNG Project.


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