Shell wraps up Masela stake sale

A unit of LNG giant Shell has completed the previously announced sale of its 35 percent stake in Indonesia’s Masela PSC, which includes the planned Abadi LNG project.

Shell Upstream Overseas Services (SUOS), sold the participating interest in the PSC to PT Pertamina Hulu Energi and Petronas Masela.

According to a statement by Shell issued on Wednesday, completion of the sale follows regulatory approval from Indonesia’s Ministry of Energy and Mineral Resources.

Shell previously said the base consideration for the sale is $325 million in cash with an additional contingent amount of $325 million to be paid when the final investment decision (FID) is taken on the Abadi LNG project.

Following completion of the deal, Indonesia’s Pertamina now owns a 20 percent stake and Malaysia’s Petronas has a 15 percent stake in the PSC.

Japan’s Inpex holds 65 percent operating interest in Masela PSC and is the operator of the Abadi LNG project.

Earlier this year, Inpex submitted a revised plan of development to the Indonesian government for the planned Abadi LNG project.

The plan submitted by Inpex Masela incorporates a carbon capture and storage (CCS) component.

The Inpex-operated project has seen many changes over the years and initially, the development of the Masela offshore block involved a floating LNG plant, while it now includes a 9.5 mtpa onshore LNG plant with an estimated cost of about $20 billion.

Inpex said in July it plans to resume project activities, including on-site preparation activities, after completion of the transfer of Shell’s participating interest to the new partners.

The Japanese firm and Pertamina signed a memorandum of understanding on a strategic collaboration to pursue the implementation of the Abadi LNG project.

Most Popular

Energy Transfer seals Lake Charles LNG supply deals

Texas-based Energy Transfer has signed new supply deals for its planned Lake Charles LNG export facility in Louisiana as it works to take a final investment decision by the end of this year, according to its management.

Samsung Heavy develops new FLNG concept

South Korean shipbuilding giant Samsung Heavy Industries has received approvals from three classification societies for its new multi-purpose FLNG concept.

ExxonMobil CEO expects Golden Pass LNG launch by end of this year

ExxonMobil CEO Darren Woods expects the QatarEnergy-led Golden Pass LNG export project in Texas to produce first LNG volumes by the end of this year. Separately, Golden Pass LNG is also seeking approval from the US FERC to increase peak workforce up to 10,300.

More News Like This

Peru LNG terminal shipped three cargoes in April

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped three liquefied natural gas cargoes in April due to restrictions on the transportation system, according to operator Hunt Oil.

CFO: Shell on track to ship first LNG Canada cargo in middle of 2025

LNG giant Shell remains on track to deliver the first liquefied natural gas cargo from its LNG Canada export terminal in Kitimat in the middle of this year, according to Shell's finance chief, Sinead Gorman.

Shell’s Q1 profit reaches $5.58 billion, LNG sales drop

LNG giant Shell reported a drop in adjusted earnings in the first quarter of 2025, while its LNG sales also decreased compared to the same quarter in 2024.

Wison scores Suriname FLNG gig

China’s Wison New Energies has signed a detailed feasibility study deal for a newbuild floating liquefied natural gas (FLNG) facility in Suriname's offshore Block 52.