British Petroleum (BP) signed on Engineering, Procurement, Construction, and Installation (EPCI) contract worth $3.6 billion (~Rp 56.5 trillion) with PT Meindo Elang Indah and JGC Holdings Corporation via its local subsidiary, PT JGC Indonesia.
BP announced a Final Investment Decision (FID) of over $7 billion (~Rp 110 trillion) for the Tangguh UCC Project. This was conveyed by BP CEO Murray Auchincloss to Indonesian President Prabowo Subianto on November 21, 2024, in London.
This project targets including:
Address Indonesia’s increasing energy demands.
Meet the national gas production targets.
Support decarbonization efforts to achieve national emission reduction goals.
BP must proactively address issues and maintain communication with SKK Migas to ensure project completion on schedule and within budget. The reliability of production facilities is critical to minimize unplanned shutdowns.
The Tangguh UCC Project will produce an additional 3 trillion cubic feet of gas resources. It supports Indonesia’s decarbonization agenda by reinjecting 15 million tons of CO2 during the initial phase. The project is expected to create 6,000 jobs during construction and deliver positive multiplier effects for Papua. Currently, 99% of Tangguh LNG’s workforce are Indonesians, with 70% being local Papuans.
Kathy Wu, BP’s Regional President for Asia Pasific, highlighted the $7 billion investment as evidence of BP’s commitment to Indonesia’s energy resilience and sustainability. She acknowledged the support from Indonesia’s Ministry of Energy and Mineral Resources (ESDM) and SKK Migas.
The project includes developing the Ubadari gas field, CCUS (Carbon Capture, Utilization, and Storage), and onshore gas compression. It will be one of the Indonesia’s first large-scale CCUS applications.