British Petroleum (BP) has agreed to put an investment of US$7 billion in support of the Tangguh Ubadari, Carbon Capture Utilization & Storage (CCUS), and Compression (UCC) projects in Indonesia upon an assessment meeting between the British oil&gas company and the Upstream Oil and Gas Regulatory Task Force (SKK Migas).
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia appreciated the BP’s commitment to support Indonesia’s oil and gas production, while also positively contributing to the regional economy.
“This investment of around US$7 billion is huge. Besides supporting national oil and gas production, this investment also increases added value for the region, regional income, and creates a positive multiplier effect,” Bahlil said in a statement as quoted on Monday, November 25, 2024.
He cited that BP’s final investment decision for the Tangguh UCC project proves that the Indonesian oil and gas industry remains attractive to foreign investors. This project is expected to contribute to increasing national oil and gas production and support the Government’s vision in achieving energy security and sustainability.
“In accordance with President Prabowo Subianto’s direction, the government is committed to increasing oil and gas production and lifting. The BP Tangguh project will be one of the efforts to realize this goal,” Bahlil said.
Prabowo secured investment commitment of US$8.5 billion during his recent visit to the UK. At the CEO Roundtable forum held in London, BP was one of the 19 large companies in attendance that expressed optimism about the Indonesian economy.
First large CCUS project
Murray Auchincloss, CEO of BP said BP Tangguh’s UCC Project is one of the large-scale strategic projects that has the potential to become the first Carbon Capture and Storage (CCS) Hub in Indonesia. With gas reserves reaching 3 trillion cubic feet (TCF), the project is planned to start operating in 2028.
The project will have a CO2 storage capacity of up to 1.8 gigatons. In the initial phase, the project will inject 15 million tons of CO2 from emissions from the Tangguh LNG operating facilities.
The main components of the UCC project include the development of the Ubadari gas field, increasing gas recovery through Enhanced Gas Recovery (EGR) technology, the CCUS project in the Vorwata field, and the installation of onshore compressors to utilize existing infrastructure at the Tangguh LNG facility, West Papua.
