TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
BP and Pertamina Sign MoU to study gas supply and CO2 injection at Tangguh
Change Size
B
P Berau Ltd (BP), the operator of the Tangguh gas field, which acts on behalf of the Tangguh Production Sharing Contract (PSC) Contractors, today signed a Memorandum of Understanding (MoU) with PT Kilang Pertamina Internasional, a subsidiary of Pertamina, for collaboration on Pertamina's study of natural gas potential and CO2 injection in Tangguh and the potential development of blue ammonia in Teluk Bintuni, West Papua.
Production Sharing Contract (PSC) Tangguh consists of BP and its affiliates in Tangguh, MI Berau B.V., CNOOC Muturi Limited, Nippon Oil Exploration (Berau) Limited, KG Berau Petroleum Ltd., Indonesia Natural Gas Resources Muturi, Inc. and KG Wiriagar Petroleum Ltd.
Signed at the 2023 Indonesia Oil & Gas Forum (IOG), which was held from September 20-22, 2023, in Nusa Dua, Bali, the study conducted by Pertamina aims to support growth in the petrochemical industry, particularly in West Papua, to help boost the local economy. This MoU also paves the way for BP and Pertamina to support the energy transition by providing clean energy products through carbon capture, utilization and storage (CCUS) at Tangguh.
BP's Tangguh CCUS project received development plan approval from the Indonesian government in 2021, with Front-End Engineering Design (FEED) work currently underway and project approval nearing. Tangguh is in the right position and has the potential to become the country's first carbon capture and storage (CCS) hub for both domestic and international emissions producers.
Currently, Pertamina is considering utilizing the potential gas supply in Teluk Bintuni, West Papua, as well as harnessing Tangguh CCUS to produce blue ammonia, as an alternative clean energy of the future. This collaboration could help produce clean energy in Indonesia.
BP’s Asia Pacific Regional President for Gas & Low Carbon Energy Kathy Wu said, “As a clean energy company that has operated in Indonesia for more than five decades, we proudly support Pertamina and the Indonesian Government in the net zero agenda through potential gas supply and CO2 injection in Tangguh. This MoU marks this strategic collaboration with Pertamina.”
PT Kilang Pertamina International President Director Taufik Adityawarman said, “PT Kilang Pertamina International (KPI) is committed to solving the “energy trilemma” by providing energy that is not only efficient and affordable, but also sustainable, while also exploring new alternative clean energy, such as blue ammonia, which is one of the key drivers for clean electricity production with co-firing. As a downstream refinery and petrochemical industry player, KPI's collaboration with upstream oil and gas companies to bring CCS technology is a crucial factor in achieving blue certification by reducing over 70 percent of CO2 emissions from the ammonia production process. This MoU marks the beginning of collaboration between Pertamina and BP in supporting the net zero agenda, which is an important commitment of the Indonesian Government.”
Pertamina Vice President of Corporate Communication Fadjar Djoko Santoso supports KPI's collaborative initiative because it can contribute to the development of the energy transition for both Pertamina and Indonesia. “This is the first important step in the development of the energy transition, other than maintaining national energy security, Pertamina has a role to be a leader in supporting the net zero emissions target,” says Fadjar.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that have a direct impact on achieving Sustainable Development Goals (SDGs). All these efforts are in line with the implementation of environmental, social and governance (ESG) principles across all Pertamina's business lines and operations.
About BP Indonesia
All of BP's businesses have a footprint in Indonesia, with Tangguh LNG as the country’s largest gas producer, Castrol in lubricants and trading, while also expanding as a new player in retail and aviation fuels, with a total investment of approximately US$15 billion to date. In West Papua, BP's presence encompasses Tangguh LNG, offshore wells and other facilities. Tangguh is the largest gas producer in Indonesia, contributing approximately 20 percent to national gas production, with a total investment to date of around $10 billion. After Train 3 is fully operational, Tangguh is expected to comprise about 35 percent of national production.
About KPI
KPI is a subsidiary of Pertamina that engages primarily in oil refining and petrochemicals based on ESG principles. KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of the UNGC in its operational strategy and the implementation of ESG aspects. KPI will continue to conduct its business professionally to realize its vision as a world-class oil refining and petrochemical company that cares about the environment, is socially responsible and maintains good corporate governance.
