"I have received a report from Archandra (Vice Minister for Minerals and Energy Resources) that it is still good," Coordinating Minister Panjaitan said.
Jakarta (ANTARA News) - Coordinating Minister of Maritime Affairs Luhut Panjaitan has confirmed that Japanese investor, Inpex Cooperation, would continue to operate the Masela Block in Arafura Sea, Maluku.

"I have received a report from Archandra (Vice Minister for Minerals and Energy Resources) that it is still good," Coordinating Minister Panjaitan said here on Tuesday.

Minister Panjaitans comment came in response to certain reports that Inpex Corp would quit as an investor in the Masela Block as no agreement could be reached on the incentive that the contractor would offer to the government.

However, Panjaitan explained that discussions were still going on between the Indonesian government and the investor regarding a cooperation contract on gas resources at the Masela Block.

"Certain issues are still under negotiations, but things have been moving. They have been holding meetings three times a week," he assured.

Previously, Inpex Corp had proposed a 15 percent incentive on the Internal Rate of Return (IRR) to the government with a surge in capacity surge from 7.5 million tons per annum (mtpa) to 9.5 mtpa.

Inpex Corp also sought an extension of the moratorium period, pushing it from 2028 to 2039, and a US$1.2 billion cost recovery for feasibility studies.

Regardless of the ongoing negotiations between the Indonesian government and Inpex Corp, Minister Panjaitan hoped that the development of Masela Block could be started as soon as possible.

Panjaitan has instructed the stake-holders to finalize the plan of development (POD) within eight months and start construction at the site in 2019.(*)

Editor: Heru Purwanto
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