Bahlil Lahadalia told parliament that Shell wanted to pull out of the $20 billion project so that a consortium made up of state-owned energy company Pertamina, sovereign wealth fund Indonesia Investment Authority (INA) and other firms could take over. go.
“The president has ordered me and the minister of state enterprises to give priority to the Masela gas project,” he told lawmakers.
Japanese energy company Inpex corp controls 65% of the project, also known as the Abadi LNG project, and hopes to make a final investment in Masela in the second half of this decade.
Mr Bahlil also said the president believed the town of Saumlaki in the Tanimbar Islands was the right location for the project as basic infrastructure was available.
Pertamina will examine all possibilities to increase production, including the development of the Masela project, said Arya Dwi Paramita, spokesman for its upstream unit Pertamina Hulu Energi.
A Shell spokesman said the company could not comment on project portfolio activity at this time.
Inpex and INA did not immediately respond to requests for comment.