Wanted: Certainty on the Masela Block

More than a month has passed since President Joko Widodo announced his decision on the Masela Block, but nothing more has been heard about it. The two operators awarded the right to manage the block, Inpex Masela Ltd. and Shell Plc., have shown no signs of carrying out another feasibility study, following the President's decision. If this state of affairs continues, both the operators as well as the state will lose out.

The Masela Block issue emerged once again when the President visited the Netherlands last week. In a meeting with Dutch Prime Minister Mark Rutte and several businessmen, the decision to opt for an onshore refinery was raised. It was still seen as a controversial choice.

May 3, 2016