Inpex to Cut Workforce in Indonesia Amid Masela Delay

Japan’s Inpex plans to reduce its workforce in Indonesia by almost 40 percent amid absence of decision on approval of the revised field development plan for deep-water gas fields, Masela.

The oil and gas regulator, SKKMigas, said in a news release that the company employs about 350-400 people.  

The regulator stated that final investment decision will be delayed by two years, from 2018 to 2020, even if the project is approved. Inpex submitted the revised POD in September last year.

Delay in approval is primarily because the government has not been able to decide whether the block will be developed as a floating offshore LNG plant or onshore scheme. The Masela block, located in the Arafura Sea, is operated by Inpex, which holds a 65 percent stake while 35 percent is held by Shell.

SKK Migas also said that Shell has asked its engineers attached with the project to shift to other global operations.