TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia anticipates that the Abadi Masela LNG project will generate approximately $37.8 billion in direct government revenue. Energy and Mineral Resources Minister Bahlil Lahadalia also forecasted $6.43 billion in indirect tax income. The figures were announced following a groundbreaking event on July 16 in Maluku, which officially marked the commencement of physical development for the $20.9 billion national strategic project. President Prabowo Subianto participated remotely from Jakarta. The government designates Abadi Masela as a major project for national energy development.
During its peak construction phase, over 12,000 jobs could be created, according to government estimates. Indonesia plans to ensure that 30% of these positions are filled by workers from Maluku and the Tanimbar Islands. Once operational, the project is expected to employ between 800 and 1,000 personnel. Officials project that the project could contribute $137.8 billion to Indonesia’s gross domestic product, with additional contributions estimated at $95 billion for Maluku and $92 billion for the Tanimbar Islands. These projections encompass the economic activity anticipated during both the development and operational stages of the project.
Located in the Arafura Sea, the Abadi gas field is approximately 180 kilometers from Yamdena Island. Water depths in the offshore area range from 400 to 800 meters. Development plans include subsea production infrastructure, an offshore processing vessel, and a pipeline of roughly 175 kilometers. The project also features plans for an onshore liquefied natural gas (LNG) plant and facilities for carbon capture and storage. The target annual production is 9.5 million tonnes of LNG, along with a daily output of up to 35,000 barrels of condensate.
Majority of Gas for Domestic Consumption
Indonesia mandates that at least 60% of the produced gas be supplied to the domestic market. The remaining 40% is intended for export, with overseas sales capped at that percentage. Domestic consumers are expected to include fertilizer manufacturers, power generation companies, and downstream industrial firms. Potential buyers identified by the government include Pupuk Indonesia, PLN, and PGN. The project will also deliver 150 million standard cubic feet of pipeline gas daily. The domestic allocation was incorporated into the approved development framework by Indonesia’s Energy Ministry.
INPEX is the operator of the project, holding a 65% participating interest. Pertamina owns 20%, and Petronas controls the remaining 15%. The production sharing agreement extends until November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. A revised plan, including carbon storage, received approval in 2023. Front-end engineering work started in 2025, with INPEX aiming for a final investment decision by the end of 2027 and production anticipated in the early 2030s.
Progress in Engineering for Core Infrastructure
Engineering activities are ongoing for the offshore vessel, subsea systems, export pipeline, and onshore LNG facility. Two contractor teams are conducting concurrent design processes for the offshore vessel and liquefaction plant. This work is part of the effort to finalize technical plans and select contractors ahead of the investment decision. The July groundbreaking ceremony marked the start of physical construction, following over two decades of field studies, regulatory reviews, and planning. Development continues across multiple offshore and onshore components.
A 10% participating interest has been set aside for a company owned by Maluku Province. The field is situated more than 12 nautical miles from the nearest island. Revenue-sharing mechanisms for oil and gas also include funds allocated to the province. Indonesia’s Energy Ministry expects local firms to participate in supply and service activities during development. The government’s plans also include workforce training and infrastructure support. These revenue, employment, and economic impact projections will remain official estimates as engineering, contracting, and construction activities proceed.