bp and partners give go-ahead for Tangguh UCC Project in Papua Barat, Indonesia

• Investment is expected to unlock around 3 trillion cubic feet of additional gas resources
• Project features Indonesia’s first at-scale enhanced gas recovery through carbon capture,  utilization, and storage (CCUS), aiming to sequester around 15 million tonnes of CO₂ in its initial phase  and potentially more considering the large CO₂ storage capacity of area
• Another example of bp’s near-term priorities in action: to deliver growth as a simpler, more focused, higher value company
  

bp, on behalf of the  Tangguh  production sharing contract partners, today announced a final investment decision on the $7 billion Tangguh Ubadari, CCUS, Compression project  (UCC), which has the potential to unlock around 3 trillion cubic feet of additional gas  resources in Indonesia to help meet growing  energy demand in Asia.

The announcement was made by Murray  Auchincloss, bp’s chief executive officer, during a meeting  with Indonesian President H.E. Prabowo Subianto in London today. This major investment highlights bp and partners’ strong confidence in Indonesia’s investment climate and strengthening their business activities in the country.

The UCC project, which comprises the Ubadari gas field development, enhanced gas recovery through carbon  capture, utilization and storage (CCUS) and onshore compression, expands and utilizes existing infrastructure at the Tangguh LNG facility in Papua Barat, Indonesia. Production at the Ubadari field is expected to start in 2028.

Murray Auchincloss, CEO of bp, said: “This project not only unlocks a fantastic gas resource,it also represents an Indonesian first through the use of CCUS to maximise gas recovery. bp has operated in Indonesia for more than fifty-five years, and the strength of our relationships enables us to bring deep technical experience in helping to deliver this innovative development. We deeply appreciate the continued support of the Government of Indonesia and partners and look forward to helping the region meet its growing energy needs.”

Tangguh CCUS aims to 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.

The UCC project has been designated as a national strategic project by the Government of Indonesia and represents the continued development of Tangguh, following the addition of the third LNG train which began operation in 2023 and brought total plant liquefaction capacity to11.4 million tonnes per year.

The  investment meets bp’s returns hurdle  rates and is fully accommodated within  bp’s disciplined financial framework, reflecting bp’s 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.

Notes to editor:

• The UCC project includes the extension of the gas feed to Tangguh LNG through the development of the Ubadari field with the potential to reduce Tangguh  LNG’s operational emissions via CO₂ sequestration. Once completed, Tangguh EGR/CCUS itself will have three injection wells, one offshore injection platform, one offshore CO₂  pipeline, and onshore facilities for CO₂  removal, processing, and compression.
• Tangguh continues to support local workforce development, with 99% of its operations workforce being Indonesians, including 70% Papuans, and is on track to achieve 85% Papuan workforce in Tangguh by 2029.
• bp is the operator of Tangguh LNG, acting on behalf of Tangguh Production Sharing Contract Partners. bp operates Tangguh with 40.22% participating interest, with partners MI Berau B.V. (16.30%) CNOOC Muturi Limited (13.90%), Nippon Oil Exploration(Berau), Ltd. (12.23%), KG Berau Petroleum Ltd (8.56%), KG Wiriagar Petroleum Ltd(1.44%), Indonesia Natural Gas Resources Muturi Inc. (7.35%).
• The plan of development (POD) for Tangguh UCC Project was approved by the Government of Indonesia in August  2021.
• More information on Tangguh EGR/CCUS is available here.
  

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