Bisnis, JAKARTA — Shell's refusal to fulfill its commitment to relinquish its 35 percent participating interest (PI) in the Masela Block has ignited the government's anger.
The prolonged saga of the Masela project, which endured a 20-year stall due to various cooperation schemes, finally found momentum during President Joko Widodo's era. However, the project now faces the risk of stagnation without any signs of progress.
Shell Upstream Overseas Ltd., since 2019, has expressed its intention to withdraw from the Abadi liquefied natural gas (LNG) project in the Arafuru Sea, Maluku. Meanwhile, PT Pertamina (Persero) has undergone rigorous processes to secure a partnership with Inpex Corporation by acquiring the 35 percent PI that Shell is set to release in the Masela Block.
Despite PT Pertamina Hulu Energi's (PHE) formal offer to acquire Shell's PI rights through Pertamina's Upstream Subholding, Shell has been delaying the divestment of these shares.