Japan's Inpex to cut Indonesian workforce by 40 pct - regulator | Reuters

JAKARTA Japanese oil and gas firm Inpex Corp will delay sanctioning its Masela Abadi liquefied natural gas (LNG) project in Indonesia by at least two years, the Indonesian energy regulator said in a written statement on Wednesday.

As a result of the delays to a government decision on whether the project should go ahead as an offshore facility or be moved onshore, the company plans to reduce its Indonesian workforce by at least 40 percent, said Amien Sunaryadi, chairman of the regulator, SKK Migas.

The pace of development of giant gas export schemes has slowed globally as liquefied natural gas prices have plummeted with oil prices, prompting many companies to delay funding decisions until business conditions brighten.

The planned 7.5 million-tonne-per year Abadi Floating LNG plant, jointly developed by Royal Dutch Shell, would be the largest of its kind in the world with an estimated price-tag of over $14 billion.

"We are still waiting for a government decision on the revision of the plan of development, and hope there will be a decision as soon as possible," Usman Slamet, senior communication manager at Inpex Indonesia said.

Once a decision is made Inpex will continue with Front End Engineering Design on the project, while staffing levels will be adjusted in line with the company's workload, he added.

(Reporting by Wilda Asmarini, Writing by Fergus Jensen and Oleg Vukmanovic, editing by Louise Heavens and David Evans)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Mar 17, 2016 00:00 AM

Also Watch

Watch: Firstpost test rides the new Thunderbird 500X in Goa and walks you through the Royal Enfield Garage Cafe
  • Tuesday, April 17, 2018 Varun Dhawan on Shoojit Sircar's October, 5-star reviews and working with Anushka Sharma in Sui Dhaaga
  • Saturday, April 14, 2018 Ambedkar Jayanti: Re-visiting Babasaheb's ideals exposes fake Dalit politics of Rahul Gandhi and Congress
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See