“Government Disappointed with Shell’s Delay in Relinquishing Masela Block to Pertamina: Minister of Energy and Mineral Resources Speaks Out”

Jakarta –

The Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif was disappointed with Shell because of the negotiation process for the relinquishment of participating rights Block Masela to PT Pertamina (Persero) has not been completed. This makes the government lose so many opportunities.

“Masela is still progressing, but you see, Masela is taking a while, so the government will lose opportunitiesIt’s that long,” said Director General of Oil and Gas (Migas) of the Ministry of Energy and Mineral Resources Tutuka Ariadji at the DPR RI Complex, Central Jakarta, Tuesday (23/5/2023).

Arifin was also disappointed because of this and said that his party would review the development plan or Plant of Development (POD) Masela Block. “Finally yesterday the Minister said that the Minister was disappointed, so we want tofollow up, want to revisit the POD. We’ll see how come the POD can take so long like that,” he said.

However, Tutuka has not disclosed the value offered by Shell to relinquish the Masela Block’s participating rights to Pertamina. “That’s a business matter, I can’t state the full figure, but the government is disappointed, how come it’s taking too long,” he said.

Negotiations between Pertamina and Shell Alot

Last week, Arifin revealed that the negotiation process between Pertamina and Shell was still ongoing but tough. He also made sarcasm against Shell.

“It’s still in the negotiation process, it’s a bit tough, because of Shell, yes he should understand better, how long has Shell’s history in Indonesia been? He’s already benefited a lot,” he said at the Ministry of Energy and Mineral Resources, Central Jakarta, Friday (19/5).

“Shell has always existed, this time it is for Indonesia’s interests, she doesn’t want to be flexible,” he added.

Arifin explained Pertamina’s urgency to enter the Masela Block to spur gas production to support the energy transition. “We know that we need gas to support the transition, gas is cleaner than coal, while demand is increasing,” he said.

The government is currently trying to optimize the existing gas potentials. On the other hand, the block was offered internationally but there were no takers.

“That’s why we will optimize the potential gas sources that exist before 2060. So far, there have been no international offers, now the government wants to encourage government representatives to be able to fill in what has been difficult so far. bargain anywhere empty,” he explained.

What is the story of Shell withdrawing from the Masela Block? Check next page.

(acd/eng)