File photo
London: UK oil giant BP on Thursday unveiled a $7-billion joint project aiming to unlock around 3 trillion cubic feet of additional gas resources at its Tangguh site in Indonesia's West Papua province.
BP chief executive Murray Auchincloss sealed the investment deal during a meeting with Indonesian President Prabowo Subianto, who was in London at the tail end of a global tour.
The new leader of the southeast Asian archipelago nation also met UK Prime Minister Keir Starmer in Downing Street.
BP said in a statement the "major investment" highlights its "strong confidence in Indonesia's investment climate".
The project involves the development of a new gas field, Ubadari, as well as enhanced gas recovery through carbon capture, utilisation and storage (CCUS) and onshore compression.
It expands and utilises existing infrastructure at the Tangguh liquefied natural gas (LNG) facility in Papua Barat in Indonesia, with production at the new field expected to start in 2028.
The new venture will be the first CCUS project developed at scale in Indonesia, with potential for sequestering around 15 million tonnes of CO2 from Tangguh's emissions in its initial phase, according to BP.
"This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS to maximise gas recovery," Auchincloss said.
BP operates the Tangguh LNG production facility on behalf of a consortium, and owns just over 40 percent. The unit has been operating since 2009.
The company's statement on Thursday said the new investment reflecting its "drive to focus on value and returns".
"Tangguh is in a strategic location to access high value regional markets, and the investment reflects BP's commitment to continue to meet energy demand for Indonesia and the region," it added.
BP last month announced a sharp fall in net profit for the third quarter, with the oil and gas giant hit by weak oil trading and refining margins.
