30-05-08 Inpex Masela Ltd, operator of the Masela Block in the Timor Sea, plans to invest $ 14.5 bn in gas exploration operations in the concession, an oil and gas official said. The investment among other things would cover the construction of a floating storage and a Liquefied Natural Gas (LNG) plant under an upstream development scheme, R. Priyono, head of the Upstream Oil and Gas Regulatory Body (BP Migas), said.
"But if the LNG plant is built according to a downstream development scheme, the amount Inpex needs to invest will be much lower," he said.

The Japan-based company had submitted its investment proposal to BP Migas as part of its Plan of Development (PoD).
Priyono said BP Migas had asked the company to study the possibility of using the downstream development scheme in operating the Masela Block which was estimated to hold 10 tcf of gas reserves.
"We will choose which scheme is more profitable," he added.

The investment to exploit the Masela Block was relatively huge because the gas reserves were located some 4,000 meters under the sea.
Inpex holds a 100 % participating interest in the Masela Block, and its contract on the block was signed in November 16, 1998.