REPUBLIKA.CO.ID, JAKARTA -- Local companies are being encouraged to take part in the development of an onshore gas refinery plant of the Masela Block's Abadi gas field, in Arafura Sea, Maluku province.

"The participation of local businesses in the development of the refinery plant is expected to provide optimal benefit to the local people," Bahlil Lahadalia, chairman of the Indonesian Young Entrepreneurs Association (Hipmi) said in Jakarta Friday.

The government has decided to develop onshore the refinery of Masela Block's Abadi gas field, which is the country's largest gas resource with reserves of 10.7 trillion cubic feet and could be exploited for 70 years.

"The Hipmi appreciated the decision because it ended the long drawn debate about the Masela Block, which had been going on for some 15 years," Bahlil Lahadalia said.

However, he called on local businesses to take advantage of the development of the Masela Block's refinery plant onshore. Local businesses should really reap optimum benefits, he said.

"The decision to develop the refinery onshore should benefit local firms. They can serve as suppliers, subcontractors, service providers or look after other aspects," he said.

The government has finally decided that the refinery plant of Masela Block's Abadi gas field should be located onshore.

The decision came as a surprise for the Masela contractors. The government took the decision after the project triggered polemics on whether it should be developed onshore or offshore.

The contractors of the gas field are Japan's Inpex Corporation and Shell Upstream Overseas Services Ltd, a Royal Dutch Shell subsidiary.

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