Japanese oil explorer Inpex Holdings needs to submit plans to develop the Abadi gas field in the Timor sea by May or risk losing its contract, Indonesia’s energy watchdog said.

Indonesia is keen to accelerate exploration and production of oil and gas, given dwindling production from its own ageing fields and in order to avoid costly imports.
Inpex has a 100 per cent stake to develop the Abadi gas field in the Masela block in eastern Indonesia.
“Inpex has to submit plans to develop the Abadi field by May at the latest,” Dodi Hidayat, deputy head of the energy watchdog, BPMIGAS, told reporters.
“If Inpex does not submit the plans by May, then the contract (for the Masela block) may be terminated,” he added.
Hidayat said Indonesia wanted Inpex to build a floating liquefied natural gas (LNG) plant near Masela. But the Japanese firm has said it aims to start commercial gas production at Abadi in around 2014-2016.
A preliminary study has suggested that two LNG trains (plants) with a capacity of 3 million tonnes each per year would be required.
A document from the energy ministry seen by Reuters shows that Inpex signed a contract in November, 1998, to explore and develop the Masela block.
The ministry has said it may terminate oil and gas contracts if contractors do not develop fields to produce oil or gas within a 10-year period. But Indonesia has also said it will consider extending expired contracts.