Japanese oil company Inpex Corp. and Indonesian oil and gas regulator SKK Migas have agreed on a framework for a $20 billion development plan for the Masela gas block in eastern Indonesia, Reuters reported May 27, citing the country's energy ministry.
The Indonesian government expects to have at least a 50% share in production from the block, according to a statement from the energy ministry, as cited by Reuters.
Both parties plan to enter into a final deal during G-20 meetings to be held in Japan in late June, Reuters reported. The development plan was revised from offshore to inland, postponing the estimated start of production to the late 2020s, the report said.
Inpex holds a 65% stake in the Masela gas block, while the remaining 35% is held by oil major Royal Dutch Shell PLC.