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Shell Gas Project in Indonesia Risks Running Out of Steam

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President Joko Widodo’s decision for an onshore scheme is estimated to add more than $5 billion to the project’s cost

By BEN OTTO: March 23, 2016 

JAKARTA, Indonesia—Inpex Corp. and Royal Dutch Shell PLC. suffered a blow Wednesday in their $14 billion bid to exploit a deep-water gas field in Indonesia, after President Joko Widodo declared the scheme must make use of an onshore refinery rather than a proposed floating facility.

Inpex, the project’s planned operator, and partner Shell proposed six months ago to build a massive floating facility to exploit a major gas field in the country’s remote east known as Masela.

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