Global Giants Compete for Inpex’s $19 Billion Masela Gas Project Design Contract
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JAKARTA, Investortrust.id — Two international engineering powerhouses are in a tight race to secure the front-end engineering design (FEED) contract for the $19 billion Abadi gas development, a flagship liquefied natural gas (LNG) project operated by Japan’s Inpex Corporation in the remote Masela Block, Maluku.
According to sources quoted by industry publication Upstream, Inpex is close to finalizing its preferred FEED contractor as it prepares to launch the next critical phase of the Abadi project.
The offshore Abadi field will be developed via an onshore LNG (OLNG) facility with an annual capacity of 9.5 million metric tons, alongside 150 million standard cubic feet per day (MMSCFD) of pipeline gas for Indonesia’s domestic market. The ambitious plan includes two LNG trains and a condensate output of approximately 35,000 barrels per day.
The Abadi project is spearheaded by Inpex through its subsidiary Inpex Masela, Ltd, and has reached the final stage of its FEED tender process. "The FEED phase will soon begin and marks a critical milestone in this project’s journey," said Jarrad Blinco, Executive Project Director at Inpex Masela Ltd, on Wednesday, July 9, 2025.
Located in the Tanimbar Islands, the development faces complex engineering and logistical hurdles due to its remoteness. Among the key challenges is constructing a subsea pipeline that must cross the Tanimbar Trough, which plunges over 1,500 meters deep.
Inpex also plans to install one of the largest floating production storage and offloading (FPSO) facilities in Indonesia. The project will deploy the country’s largest-ever subsea Christmas Tree system and become Indonesia’s first LNG venture to incorporate carbon capture and storage (CCS) from the outset.
"This will be the first project in Indonesia to apply CCS-enabled subsea Christmas Tree technology via deepwater wells," Blinco noted.
Inpex believes Abadi will significantly bolster Indonesia’s energy security while supporting national decarbonization goals. The initiative is backed by Indonesia’s upstream oil and gas regulator, SKK Migas, and aligns with the country’s strategic energy roadmap.
Indonesia has been a net importer of oil and gas for the past decade. President Prabowo Subianto has made energy security a national priority, with a strong emphasis on reducing the country’s dependency on overseas energy supplies—including crude oil and natural gas.
Rikky Rahmat Firdaus, Deputy for Exploration, Development, and Working Area Management at SKK Migas, noted that Indonesia ranks ninth out of 14 Asia-Pacific countries in upstream oil and gas investment competitiveness. He called for bold policy reforms to enhance Indonesia’s position globally. “There are at least 15 strategic upstream oil and gas projects, including the Abadi-Masela project, that are expected to begin production as scheduled,” he said.
Abadi is a landmark project for Indonesia as it integrates CCS technology from inception—a critical step in the country’s pursuit of net-zero emissions. It is part of the National Strategic Projects list and is expected to contribute both to energy security and the broader clean energy transition.
Inpex holds a 65% operating stake in the Abadi field, with Indonesia’s Pertamina Hulu Energi Masela owning 20% and Malaysia’s Petronas Masela Sdn. Bhd. holding the remaining 15%.