Inpex Masela, a subsidiary of Japan’s Inpex, has prolonged its memorandum of understanding (MOU) with Indonesia’s PT Pertamina (Persero) (Pertamina) for a strategic collaboration to proactively pursue the implementation of a liquefied natural gas (LNG) project in the Arafura Sea, Asia.
Inpex has extended its memorandum of understanding, originally inked in July 2023, with Pertamina for the Abadi LNG project in Masela Block. The firm also signed another MoU for upstream business in Indonesia and Southeast Asia with PT Pertamina Hulu Energi (PHE).
The 20 billion LNG project entails an annual natural gas production capacity of 10.5 million tons of gas equivalent, with roughly 9.5 million tons of this expected to be LNG. The condensate production is estimated to reach up to 35,000 barrels per day.
Inpex Masela is the operator of the Abadi LNG project with a 65% interest. The firm’s partners are Pertamina (20%) and Petronas (15%), following Shell’s exit in 2023 . The production sharing contract (PSC) is valid until November 15, 2055.
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Through both MOUs, the two companies will continue to collaborate strategically in a wide range of fields with a focus on the Abadi LNG project’s value chain, while Inpex aims to form a cooperative effort with PHE on upstream business in Southeast Asia, with a particular focus on Indonesia.
The company expects both MOUs to contribute to the expansion of its natural gas and LNG business outlined in Inpex Vision 2035, which was announced in February 2025.