Integrated Evaluation of Masela Block Development Concepts

Abstract

The vast amount of proven reserves of Masela gas block in Indonesia that reach 10.73 TCF is captivating in terms of development. The hydrocarbon is going to be produced through 18 production wells that are connected to 5 subsea manifolds in the water depth ranging from 300 m to 1,000 m and converted to LNG. There are two main feasible development scenarios that are well known as offshore vs onshore concept. Offshore concept aims to build huge 500 x 82m FLNG with capacity of 7.5 MTPA, gas production up to 1,200 MMSCFD and 24,460 BOPD of condensate. With the defined capacity the size of FLNG on its completion will be marked as the most gigantic offshore vessel ever built. The other onshore concept that suggested the accumulated gas from subsea production system is connected to 330 x 65m FPSO then transported by pipeline to 9 MTPA onshore LNG Processing Plant in Maluku, and exported to customer from the region. The engineering analysis is performed to evaluate the feasibility of FLNG to be implemented in Masela condition. The main challenge of FLNG Masela is its huge dimension that leads to safety issues. On onshore concept, the pipeline become the highlight of the study. The finest route is to lay 100 km pipeline to onshore Pulau Yamdena where is relatively save according to engineering evaluation as well as attractive in term of economic. With certain assumptions, the economic model is built to compare both concept in business perspective. The cost of 7.5 MTPA FLNG reach 17.978 billion USD or expected about 2.4 billion USD/MTPA. On the other hand, onshore LNG Plant looks promising with cost of 1.165 billion USD/MTPA. The total cost for developing Masela block with onshore option in the range of 14.573 billion USD even 25% lower than the cost of FLNG itself. The capital expenditure as well as the price of LNG are highly affecting the economics value of both concepts. The existence of Masela block in this region may lead to prosperity of this region or in contrast lead to larger gap in social strata of this province. Social analysis also conducted to gain broader point of view. More industries might be developed such as shipbuilding, fertilizer, also petrochemical industry as the multiplier effect of the existence of the block in the region.