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BP’s West Papua LNG production contract extended by 20 years
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Mega project: A worker carries out activities at a natural gas liquification facility at the Tangguh liquefied natural gas (LNG) plant in Bintuni Bay, West Papua, on Sept. 21, 2015. (Tempo/-)
T
he government has granted BP, a United Kingdom-based oil producer, a 20-year extension on a contract to produce liquefied natural gas (LNG) in West Papua.
“We would like to thank the government of Indonesia, especially the Energy and Mineral Resources Ministry and SKK Migas, for their continued support for this key project. We look forward to continuing to work with Indonesia and our partners for many years to come,” said BP executive vice president for gas and low-carbon energy Anja Isabel Dotzenrath on Friday.
BP acts as the operator of the Tangguh production sharing contract (PSC), which covers three blocks, namely Berau, Muturi and Wiriagar. The three PSCs were due to expire in 2035 but under the new agreement will be extended to 2055.
“This extension reflects BP’s long-term commitment to Indonesia. […] Today’s agreement will help open new possibilities for Tangguh’s future,” Dotzenrath said in a BP press statement.
“It will allow us to continue building on the great work that our Indonesian team has been doing – with our partners and the strong support of the government – to deliver much-needed natural gas safely and reliably from Tangguh to Indonesia and other markets,” she added.
The extension agreement was signed on Friday by Energy and Mineral Resources Minister Arifin Tasrif, SKK Migas chairman Dwi Soetjipto, BP Asia-Pacific regional president for gas and low carbon energy Kathy Wu and representatives from Tangguh partners.
“With the extension, we will be able to continue our important work to meet the country's energy demand by expediting exploration activities, contributing to the state’s revenue and further supporting the local economy,” said Wu on Friday.
“With our recent addition of other blocks in Indonesia, this also reflects our confidence in the government of Indonesia as we continue to invest in the country and deliver energy solutions,” she added.
Read also: SKKMigas approves BP’s carbon capture plan for Tangguh LNG
According to BP’s statement, Tangguh is the largest gas-producing field in Indonesia, totaling around 20 percent of the country’s gas output.
The LNG project kicked off operations in 2009.
The Tangguh PSC partners consist of MI Berau B.V., CNOOC Muturi Ltd., Nippon Oil Exploration (Berau) Ltd., KG Berau Petroleum Ltd., KG Wiriagar Petroleum Ltd. and Indonesia Natural Gas Resources Muturi Inc.
