K&L Gates Advises PT Pertamina Hulu Energi on Acquisition of Participating Interest in Masela Production Sharing Contract

Global law firm K&L Gates LLP has advised PT Pertamina Hulu Energi (PHE) on the purchase of Shell’s participating interest in Indonesia’s Masela Production Sharing Contract (Masela PSC), together with Petronas Masela Sdn. Bhd. The transaction is subject to the completion of certain conditions, including regulatory approval from the Indonesian Ministry of Energy and Mineral Resources.

The transaction will allow the buyer to enter into the contract with Inpex Corporation (Inpex), which holds a 65% operating interest in the Masela PSC and is the operator of the Abadi gas project. LNG will be shipped from the proposed LNG terminal, serving both domestic industries and overseas customers. Inpex has proposed a carbon capture and storage scheme in order to capture carbon dioxide before it enters the atmosphere, thereby reducing greenhouse gas emissions.

Singapore partner Marius Toime, London partner James Green and Australian special counsel Natasha Augustin Fleming led the K&L Gates team advising PHE on this landmark deal.

“We’re honored to have assisted Pertamina on this strategic transaction and excited to witness the positive impact the acquisition will have on Indonesia's growth and strategic objectives,” said Toime.