JAKARTA - The government has approved the extension of the Tangguh Cooperation Contract (KKS Tangguh) for BP for 20 years to increase national oil and gas production.
The signing of the KKS extension was immediately given to three BP oil and gas blocks, namely Berau, Muturi, and Wiriagar Blocks.
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the extension of this cooperation contract would ensure the availability of Liquidized Natural Gas (LNG) in meeting needs, not only domestic needs, but also to support the needs of other countries' LNGs. One of them is to support the achievement of Indonesia's energy transition targets.
"LNG is very important for Indonesia. As a country that is entering the energy transition period, we must achieve the Net Zero Emission (NZE) target by 2060. We believe that gas will have an important role in achieving this target. Indonesia has great potential to produce gas in the future, therefore the Government asks contractors to cooperate and develop resources," said Arifin.
The Tangguh extension will bring in new investments until the end of the contract period, estimated at around US$4.6 billion or equivalent to Rp66.7 trillion.
Meanwhile, state revenues in 2035 until the end of the contract period are estimated to reach 5.5 billion US dollars or equivalent to Rp79.75 trillion, as well as the positive impact in the form of its contribution in driving the national and regional economy as well as other multiplier impacts.
BP Executive Vice President Anja-Isabel Dotzenrath said this extension reflects bp's long-term commitment to Indonesia.
"This provides us with the opportunity to continue the extraordinary work our team in Indonesia has done so far, together with our partners and with strong support from the Government, to produce natural gas from Tangguh reliably and safely for Indonesia, and other markets. This extension helps open up new opportunities for the future of Tangguh," he said.
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