TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – The Abadi Masela LNG initiative in Indonesia is projected to generate approximately $37.8 billion in direct revenue for the government. Additionally, Energy and Mineral Resources Minister Bahlil Lahadalia anticipates $6.43 billion in indirect tax revenues. These figures were announced following the groundbreaking event on July 16 in Maluku, which marked the commencement of physical development for the $20.9 billion national strategic undertaking. President Prabowo Subianto participated in the ceremony virtually from Jakarta.
The government estimates that peak construction could create more than 12,000 jobs, with a plan to allocate 30% of these positions to residents of Maluku and the Tanimbar Islands. Post-production operations are expected to employ between 800 and 1,000 workers. Officials project the project will contribute $137.8 billion to Indonesia’s gross domestic product, with Maluku gaining an estimated $95 billion and the Tanimbar Islands $92 billion.
The Abadi gas field is situated approximately 180 kilometers offshore Yamdena Island in the Arafura Sea, with water depths ranging from 400 to 800 meters. The development plan encompasses subsea production infrastructure, an offshore processing vessel, a 175-kilometer pipeline, and onshore LNG processing facilities, including carbon capture and storage systems. The project aims to produce 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate daily.
Local gas allocation underpins project development
The Ministry of Energy mandates that at least 60% of the gas from Masela be dedicated to Indonesia’s domestic needs, with a maximum of 40% exported. Domestic use will support fertilizer manufacturing, power generation, and downstream sectors, with potential beneficiaries including Pupuk Indonesia, PLN, and PGN. The approved development plan also allocates 150 million standard cubic feet of pipeline gas daily. This domestic requirement has been integrated into the formal development framework for the field.
INPEX holds a 65% stake and is the project operator, while Pertamina owns 20% and Petronas holds the remaining 15%. The production-sharing agreement extends until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia authorized an onshore development plan in 2019. A revised plan including carbon storage was approved by the government in 2023. INPEX initiated front-end engineering in 2025, aiming for a final investment decision by the end of 2027.
Pre-investment engineering activities ongoing
The groundbreaking ceremony came after more than twenty years of planning following the field’s discovery. Indonesian officials regarded the event as the official start of physical construction. Meanwhile, INPEX continues detailed engineering for the offshore vessel, subsea systems, export pipeline, and onshore facilities. Two separate consortia are engaged in parallel design work for the offshore vessel and LNG plant, supporting the selection of contractors ahead of the final investment decision. Production is targeted for the early 2030s.
A 10% participating interest has been reserved for a company owned by Maluku Province. The field is located more than 12 nautical miles from the nearest island. The project framework also includes oil and gas revenue-sharing mechanisms for the province. The Ministry of Energy emphasizes that the development could benefit local businesses, infrastructure, and workforce training. Studies cited by the ministry estimate peak construction employment will exceed 12,000. Indonesia’s fiscal outlook remains based on government estimates as project preparations continue.