Asian majors Pertamina, Petronas to pay $650m for Shell gas stake

European oil company sells interest in Masela block, including huge Abadi project

Officials sign a deal on July 25 for Indonesian state oil company Pertamina and Malaysia's Petronas to take over Shell's stake in Indonesia's giant Masela gas block. (Courtesy of Pertamina)

ERWIDA MAULIA, Nikkei staff writer

July 25, 2023 17:36 JST

TANGERANG, Indonesia -- Indonesian state oil company Pertamina and Malaysian counterpart Petronas signed an agreement on Tuesday to take over Anglo-Dutch oil giant Shell's stake in Indonesia's massive Masela gas block, including a project seen costing at least $19.8 billion to develop.

Under the newly signed sale and purchase agreement, Pertamina will have a 20% participating interest in the Masela block and Petronas 15%, replacing Shell's 35% stake. Japanese energy group Inpex still holds a controlling 65% interest in the block in eastern Indonesia's Maluku province.