Inpex Venture to Sell 10% Stake in Indonesian LNG Project

Inpex Corp., operator of an Indonesian liquefied natural gas project, and its partners plan to sell at least 10 percent of their Abadi venture, Bloomberg reports.

The Japanese firm’s contract with the Indonesian government contains a provision to sell a 10 percent stake to a company designated by local governments, Naoki Kuroda, chairman, said in an interview to Bloomberg last week.

Inpex, holding a 60 percent controlling share, is also considering selling smaller stakes to potential buyers of the fuel from the LNG project, said Masahiro Murayama, a company director.

Royal Dutch Shell holds a 30 percent stake in Abadi stake. The company and Inpex plan to build a floating LNG plant in Indonesia, which would be its second LNG project.

The Abadi project will produce about 2.5 million metric tons of LNG a year in the first stage, taking in gas from the Arafura Sea’s Masela block.

Hadi Prasetyo, a spokesman for Indonesia oil and gas regulator SKKMigas, confirmed the proposed sale, the Bloomberg report said. Contractors are required to offer 10 percent interests to a company selected by local or regional governments under regulations issued in 2004, he said. PT Energi Mega Persada Tbk owns a 10 percent stake in Abadi.