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BP to invest US$7 billion in Tangguh UCC project
WINDONESIA January 2, 2025
(Antara/Galih Pradipta)
British oil and gas company British Petroleum (BP) plans to invest US$7 billion (about Rp110.95 trillion at Rp15,850 per US$1) in Indonesia. The investment would be directed to the Tangguh Ubadari, Carbon Capture Utilization and Storage [CCUS], and Compression (UCC) project in Teluk Bintuni Regency, West Papua Province.
Energy and Mineral Resources Minister Bahlil Lahadalia said that the investment decision was made after an evaluation by BP and the Indonesian government, the latter through the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) SKK Migas.
"The investment of around US$7 billion is very large, and it also supports national oil and gas production. Most importantly, it [would] raise the [local] region's added value, increase regional income, and [would] have a positive multiplier effect for the region," said Bahlil on Nov. 25, 2024.
Bahlil said that his ministry appreciated the investment decision of BP and its partners to the Tangguh UCC project. He added that the decision is proof that the oil and gas industry in Indonesia is still promising and can attract investment from abroad.
"[The Tangguh UCC project] is in line with President Prabowo's direction to increase oil and gas production and lift. With the BP Tangguh project, the government will place greater focus on increasing oil and gas production," Bahlil stated.
The final investment decision from BP on this project was received by Prabowo during his visit to London, Englandfor the momentum of the CEO Roundtable Forum on Nov. 21, 2024.
"I met with the leaders of large companies, there are 19 figures here. They have committed to investing US$8.5 billion. This shows their optimism about our economy," said the president.
The Tangguh UCC project is a large-scale endeavor that has the potential to become the first CCUS hub in Indonesia. The gas reserves of the UCC Project are around 3 trillion cubic feet (TCF), and they are planned to be onstream in 2028. The project has the potential to have a 1.8 gigatons of CO2 storage capacity, and 15 million tons of CO2 would be injected from the emissions of Tangguh liquefied natural gas operating facilities in the project's early phase.
The Tangguh UCC project includes the development of the Ubadari gas field, enhanced gas recovery through CCUS at the Vorwata field, and the installation of onshore compressors - which would be expanding and utilizing existing infrastructure at the Tangguh LNG facility in West Papua.
Source: finance.detik.comRelated Articles
