“Shell Offered $1.4 Billion for Block Masela – Indonesian Government Threatens Termination”

Jakarta –

Shell is said to have set a high price to relinquish its participation rights in Block Masela, reaching US$ 1.4 billion or Rp. 21 trillion (exchange rate of Rp. 15,000). In fact, the most expensive price offered by Shell should be US$ 700 million or Rp 10.5 trillion.

Secretary General (Sekjen) of the National Energy Council (DEN) Djoko Siswanto assessed that this price should have been offered to Pertamina. However, he allowed Shell to set any price if it sells it to Petronas.

“It should be US$700 million at the most (if it is sold to Pertamina). Meanwhile, if it is sold to Petronas, please use B2B whatever the price is,” he said when contacted. detikcomTuesday (30/5/2023).

He emphasized that if there is no agreement, the government can terminate the Masela block so that Shell may not receive anything. Later the Masela block can be assigned to Pertamina or auctioned off.

“If they don’t agree, the government can terminate the Masela Block. Then it can be assigned to Pertamina or auctioned off. The government can, basically the Oil and Gas Law article 17,” he continued.

Meanwhile, the Ministry of Energy and Mineral Resources emphasized that it would not follow Shell’s request if it released its participating rights in the Masela Block at an expensive price. Currently, Shell and PT Pertamina (Persero) are negotiating for the right to participate in the block.

The Director General of Oil and Gas (Migas) at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that Shell must provide a reasonable price. He said, in business must be fair.

“We have to be fair, we have to have fair prices, we don’t want to just accept unfair prices, business has to be fair,” he said at the Ministry of Energy and Mineral Resources, Jakarta, Tuesday (30/5/2023).

Minister of Energy and Mineral Resources Arifin Tasrif also expressed his annoyance with Shell because it has not given up its participating rights in the Masela Block. He called Shell back but not responsible.

“And also now it’s Indonesia who feels disadvantaged, we don’t want this to happen. Inpex is serious, but I don’t know that Shell has stepped down but is irresponsible,” he said at the Ministry of Energy and Mineral Resources, Jakarta, Friday (26/5/2023).

(the the)