(Adds Inpex Indonesia comment, background)
JAKARTA, March 16 (Reuters) - Japanese oil and gas firmInpex Corp will delay sanctioning its Masela Abadiliquefied natural gas (LNG) project in Indonesia by at least twoyears, the Indonesian energy regulator said in a writtenstatement on Wednesday.
As a result of the delays to a government decision onwhether the project should go ahead as an offshore facility orbe moved onshore, the company plans to reduce its Indonesianworkforce by at least 40 percent, said Amien Sunaryadi, chairmanof the regulator, SKK Migas.
The pace of development of giant gas export schemes hasslowed globally as liquefied natural gas prices have plummetedwith oil prices, prompting many companies to delay fundingdecisions until business conditions brighten.
The planned 7.5 million-tonne-per year Abadi Floating LNGplant, jointly developed by Royal Dutch Shell, would bethe largest of its kind in the world with an estimated price-tagof over $14 billion.
"We are still waiting for a government decision on therevision of the plan of development, and hope there will be adecision as soon as possible," Usman Slamet, seniorcommunication manager at Inpex Indonesia said.
Once a decision is made Inpex will continue with Front EndEngineering Design on the project, while staffing levels will beadjusted in line with the company's workload, he added. (Reporting by Wilda Asmarini, Writing by Fergus Jensen and OlegVukmanovic, editing by Louise Heavens and David Evans)
