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Inpex and Shell to prepare ground for Indonesia Abadi LNG Phase-2

Abadi LNG to be expanded on conventional scheme

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Japanese company Inpex and its Anglo-Dutch partner Shell have decided to use the conventional scheme, offshore – pipeline – onshore, to implement the full field development of the Abadi LNG project offshore Indonesia.

With the Abadi project, Inpex and Shell intend to develop the Masela Block located at the limit of the territorial water with Australia in the Arafura Sea.

Inpex-Shell_Masela_Abadi_Phase-2_Project_MapCovering 3,221 square kilometers, the Masela Block hosts the Abadi gas field by water depth between 350 meters and 1,000 meters for a total depth of 3,800 meters.

After Energi Mega Persada (EMP) leaving the project and transferring its 10% stake, the working interests in the Abadi project stands:

 – Inpex 65% is the operator

 – Shell 35%

For the first phase of this Abadi LNG project, Inpex and Shell had decided to take all technology risks in introducing one of the first floating liquefied natural gas (FLNG) production units in the world.

This Abadi FLNG project is currently at design phase with two teams of engineering companies working on competitive front end engineering and design (FEED).

Inpex_Abadi-FLNGThe FLNG dedicated to Abadi phase-1 project is designed for a capacity of 2.5 million tonnes per year (t/y) and 8,400 barrels per day (b/d) of condensate.

When Inpex and Shell prepared Abadi Phase-1 in year 2000s, the amount of reserves of natural gas and condensate were not fully appraised but all indications were pushing the first estimations of 10 trillion cubic feet (tcf) upward.

Inpex and Shell to perform FEED for Abadi Phase-2 

In this context and after investing $21 billion capital expenditure in Indonesia exploration, the FLNG concept was perfect for Inpex to start production as early as possible from Abadi.

But with proven and probable (2p) reserves estimated now at 18.4 tcf, Inpex and Shell must rethink Abadi full field development with solutions at different scale than actual FLNG capacities.

Therefore Inpex and Shell have considered a conventional concept to implement Abadi phase-2 project and following full field development.

Inpex-Shell_Masela_Abadi_Phase-2_ProjectFor this Abadi expansion project, Inpex and Shell are considering:

 – Offshore platform

 – Export pipelines

 – Onshore LNG plant

For Abadi Phase-2, Inpex and Shell are planning onshore LNG capacity of 5 millions t/y that could be expanded with two additional LNG trains of the same capacity for full field development.

This Abadi Onshore LNG plant could be located on the Tanimbar Island as originally planned in the years 2000s or on the Tanimbar Island .

Tanimbar Islands would need export pipelines of only 150 kilometers while Aru Island should require 600 kilometers pipes;

With this conventional concept, Inpex and Shell expect to save up to 25% on the FLNG solution for the Abadi full field development.

After involving engineering companies to provide the FEED work for Abadi Phase-2, Inpex and Shell have decided to move by themselves from their own conceptual study into FEED.

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