Abadi is a long-delayed integrated LNG project in eastern Indonesia. Also known as the Masela LNG project, it involves the Abadi gas field development in the Masela block in Arafura Sea as well as a 9.5 million tonnes per annum (Mtpa) onshore LNG terminal.
Japanese oil and gas company INPEX, which developed the similarly integrated Ichthys LNG project in Australia holds a 65% interest and is the operator of the project. The remaining 35% stake is held by Shell.
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The Abadi gas field and LNG development project is estimated to cost approximately £11.6bn ($15bn).
Although it was originally proposed to be developed as a floating LNG project, the development plan was revised to include an onshore LNG plant in 2019.
Marine survey works for the revised project were commissioned in March 2020, while a final investment decision (FID) is expected after the completion of environmental and engineering studies by 2022.
Targeted for commissioning in 2027, the Abadi LNG project is expected to produce 150 million cubic feet (Mcf) of pipeline gas for domestic supply and 35,000 barrels of condensate a day, apart from producing 9.5 million tonnes (Mt) of LNG a year.
Abadi gas field location
The Abadi gas field is located in the Masela block at water depths ranging between 400m and 800m in the Arafura Sea, approximately 150km offshore Saumlaki in Maluku Province, Indonesia.
The production sharing contract area within the Masela Block covers approximately 2,503km2.
Discovery and appraisal details
INPEX discovered the Abadi gas field by drilling the Abadi-1 exploration well in 2000. The offshore field was subsequently appraised by nine appraisal wells to confirm reservoir productivity.
The first two appraisal wells, namely Abadi-2 and Abadi-3 were drilled by Energy Searcher and Ocean General drillships in 2002, while the next four appraisal wells were drilled by the Ocean General rig during 2007 and 2008.
Three more appraisal wells were drilled to expand the volume of recoverable reserves during 2013 and 2014.
Geology and gas reserves
The Abadi field is estimated to contain more than 12 trillion cubic feet of proven natural gas reserves.
Situated at depths ranging between 3,700m and 3,900m, the reservoir of the offshore gas field comprises sandstone, siltstone, and mudstones of the Middle Jurassic Plover Formation.
Abadi LNG project ownership history
INPEX acquired an entire interest in the Masela Block through an open international bid in November 1998.
It transferred a 10% stake in the block to EMP Energi Indonesia (EMPI), a subsidiary of PT Energi Mega Persada in November 2010, while Shell acquired 30% interest in the project in early 2012.
EMPI sold its 10% participating interest in the Masela Block to INPEX and Shell in May 2013.
Early development details of the Masela LNG project
INPEX submitted a development plan involving a floating LNG (FLNG) plant to the Indonesian authorities in September 2008.
The phase one development plan with 2.5Mtpa of initial production capacity was approved in December 2010.
The subsea front-end engineering and design (FEED) works were initiated in November 2012, while the FLNG FEED for the project was launched in January 2013.
After the completion of both sets of FEED works, a revised plan of development with a 7.5Mtpa FLNG plant was submitted in September 2015.
The Indonesian authorities, however, rejected the plan and instructed the partners to re-propose a development plan based on an onshore LNG processing facility in April 2016.
Revised Abadi LNG project
INPEX conducted pre-FEED works for the revised development concept based on a 9.5Mtpa onshore LNG processing facility during March and October 2018.
The latest revised development plan was submitted in June 2019 and was approved in the next month.
The production sharing contract term for the Masela block was also extended by 27 years from 2028 until 2055 in a heads of agreement signed between the Indonesian Government and INPEX in July 2019.
Gas supply from the Abadi LNG project
INPEX signed a memorandum of understanding (MOU) with state-owned PT Perusahaan Listrik Negara (PLN) and PT Pupuk Indonesia for the long-term domestic LNG and pipeline natural gas supply from the Abadi LNG project in February 2020.
Contractors involved with the Abadi LNG project
Fugro was contracted to conduct marine survey works for the Abadi LNG project in March 2020.
Fugro will deploy its deepwater autonomous underwater vehicle Echo Surveyor as well its robotic seafloor drill, Seafloor Drill 2 for gathering geophysical and geotechnical data.
A consortium of Japan’s Chiyoda Corporation and Indonesia’s Synergy Engineering was awarded a pre-FEED contract for the subsea umbilicals, risers, and flowlines (SURF) as well as the gas export pipeline for the Abadi LNG project in June 2018.
Xodus Group and Subsea 7 were engaged as nominated subcontractors for the subsea pre-FEED.
KBR was awarded a pre-FEED contract for the onshore LNG processing plant, supporting utilities, and product storage as well as export facilities for the project in May 2018.
