BP Announces Approving Ubadari Tough Project FID Worth 7 Billion US Dollars

JAKARTA - British Petroleum (BP) on November 21 announced the final investment decision on the Ubadari, CCUS, and Compression (UCC) Tangguh project worth US$7 billion.

This project has the potential to produce about 3 trillion cubic feet of additional gas resources in Indonesia to help meet Asia's increasing energy needs.

BP Chief Executive Officer Murray Auchincloss said this significant investment demonstrates BP and its partners' confidence in Indonesia's investment climate and commitments to strengthen their business activities in the country.

"The UCC project, which includes the development of the Ubadari gas field, increasing gas acquisition (EGR) through the arrest, utilization, and carbon storage (CCUS), as well as compressing on land, expanding and utilizing infrastructure that already exists in the LNG Tangguh facility in West Papua, Indonesia," he said, Friday, November 22.

Murray explained that production in the Ubadari field is expected to begin in 2028.

"This project not only produces extraordinary gas resources, but is also the first project in Indonesia to utilize CCUS to maximize gas acquisition," he said.

Furthermore, he revealed, tough CCUS aims to be the first CCUS project to be developed on a large scale in Indonesia, with the potential to conduct a sequencing of about 15 million tons of CO2 from Resilient emissions in the early phase.

The UCC project is designated as a national strategic project by the Government of Indonesia and is a continuation of Tangguh development, after the addition of the third LNG train which will start operating in 2023 and increase LNG's total liquidity capacity to 11.4 million tons per year.

This investment meets BP's minimum return rate and is in full line with BP's financial framework, reflecting BP's focus on increasing investment value and returns.

"The position is strategic to access a high-value regional market, and this investment shows BP's commitment to always meet Indonesia's energy needs and the surrounding area," he said.

For information, BP is the LNG Tangguh operator by narrowing its participation rights by 40.22 percent, along with its partners namely MI BerauB.V (16.30 percent), CNOOC Muturi Limited (13.90 percent), Nippon Oil Exploration (Berau), Ltd. (12.23 percent), KG Berau PetroleumLtd (8.56 percent), KG Wiriagar Petroleum Ltd (1.44 percent), and Indonesia Natural Gas Resources Muturi Inc. (7.35 percent).