The transaction is subject to approval by the Indonesian Government and certain other conditions.

Inpex Corp affiliate Inpex Masela is the operator and will now hold 60% participating interest while PT EMP Energi Indonesia will hold 10% interest in the block.

The block which measures up to 3,221 kilometer square in area in a water depth ranging from 300 to 1,000metres.

The Abadi gas field will be developed in phases and a floating liquefied natural gas plant will be constructed to produce an annual production of 2.5 million tonnes.

The first phase of the development has received approval from the Indonesian government in December 2010.

In addition, the company plans to award front-end engineering and design contracts in the first quarter of 2012.