The Masela Refinery Ruckus

The Masela refinery debate between Coordinating Minister for Maritime and Natural Resources Rizal Ramli and Energy and Mineral Resources Minister Sudirman Said go on and on. After their differences of opinion over Freeport, this time the two cabinet ministers trade arguments over the construction of a liquid natural gas rig and refinery at the Abadi gas field in Masela, Maluku. Sudirman supports construction of an offshore refinery, while Ramli leans towards building it onshore.

The energy ministry had already approved a plan for a floating refinery provided by the Regulatory Agency for Downstream Oil and Gas (BPH Migas) in 2010. The Plan of Development (POD) had to be revised after the discovery of new liquid natural gas (LNG) reserves three years later. It was the approval of this revised POD that started a debate. Several ministers took sides in support of either offshore or onshore plans.

March 1, 2016