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7 Pages

Onshore LNG: Evaluating the options for Indonesia's Abadi


Onshore LNG: Evaluating the options for Indonesia's Abadi

Report summary

The future of the remote, 20-tcf Abadi gas field offshore Indonesia has become more uncertain. In March 2016, INPEX's proposed 7.5-mmtpa FLNG US$15 billion development was rejected by the Indonesian government, in favour of an onshore LNG plant to boost local content.

However, the increased costs associated with an onshore development could have a significant impact on project economics. We estimate a 7.5-mmtpa onshore project generates an IRR of 9.9%, versus 14.6% for the FLNG concept.

In the current industry environment, the PSC partners would be unlikely to take on the considerable risks of a remote greenfield development unless it has clear terms and robust economics. We compare several incentives Indonesia could implement to make the onshore development more attractive.

What's included?

This report includes 2 file(s)

  • Onshore LNG: Evaluating the options for Indonesia's Abadi PDF - 1.32 MB 7 Pages, 0 Tables, 4 Figures
  • Modelling assumptions.pdf PDF - 106.85 KB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

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  • Executive summary
  • Background
  • Project economics
  • Enhanced project options
  • Risks and other implications
    • Development risks
    • Corporate impact
    • Domestic petrochemical options
    • Implications for Indonesia
    • Conclusion

In this report there are 4 tables or charts, including:

  • Executive summary
  • Background
    • Location of the Abadi field
  • Project economics
    • Cumulative contractor's cash flow
    • NPV and IRR
  • Enhanced project options
    • Government's share of revenue and contractor's IRR
  • Risks and other implications
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