KUALA LUMPUR, June 26 (Reuters) - State energy firms Pertamina and Petronas plan to jointly take over Shell's participating interest in Indonesia's Masela gas project, the Indonesian energy minister said on Monday.
Shell has been seeking to divest its 35% share in Masela and Indonesian authorities are keen for the companies to complete the deal to move the project forward after years of delay.
"They are both doing the negotiation," Energy Minister Arifin Tasrif told Reuters, referring to Indonesia's Pertamina and Malaysia's Petronas.
"They have to finalise what kind of joint scheme they are preparing," he said on the sidelines of the Energy Asia conference in Kuala Lumpur, being hosted by Petronas.
Petronas said it "actively seeks new opportunities to ensure the company remains resilient in the evolving energy landscape", but did not comment specifically on the Masela project.
A Shell spokesperson said the company could not comment on ongoing portfolio activity.
Indonesia has seen sluggish oil and gas production in recent years due to depleting blocks, while some major new projects, such as Masela and Indonesia Deepwater Development (IDD), are facing delays as majors such as Shell and Chevron Corp exit projects as part of their global strategy.
Time is ticking for Indonesia to tap its massive hydrocarbon reserves even as countries worldwide move towards non-fossil fuels to reduce emissions.