Inpex downsizing workforce at Abadi FLNG project

Japan’s Inpex, the operator of the Abadi gas field in the Masela block offshore Indonesia, has decided to cut the workforce at the project by 60 percent.

This was revealed on Thursday by SKK Migas, Indonesia’s special task force for upstream oil and gas business activities. SKK Migas’ Amien Sunaryadi said that of approximately 350-500 workers at the project, Inpex will leave 90 to 100.

He said the move follows the absence of a decision on the approval for the revised field development plan at the Masela block, located in the Arafura Sea offshore Indonesia.

Apart from the layoffs by Inpex, SKK Migas has revealed that Shell has decided to have its engineers who have been working on the Masela block project, reappointed to other projects within the company.

Sunaryadi said that Inpex was still expecting the approval of the revised POD. He said that even if the approval comes soon, the Final Investment Decision would be made at the end of 2020, and not in 2018 as originally expected.

The Japanese energy company submitted a revised plan for the development of the Abadi gas field in the Masela block offshore Indonesia in September 2015.

The original development plan, approved in 2010, 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.

However, Inpex said that as a result of a greater volume of natural gas reserves being confirmed at the Abadi gas field, the revised development plan envisions the adoption of a Floating LNG (FLNG) plant with an annual LNG processing capacity of 7.5 million tons.

Offshore Energy Today Staff