A final investment decision on the $7 billion Tangguh Ubadari, CCUS, Compression project (UCC) was announced by bp, on behalf of the Tangguh production sharing contract partners. This project is currently of high importance and interest right now, as it is clear that it could have the potential to unlock an estimated three trillion cubic feet of additional gas resources within Indonesia. Doing this would help to meet the increasing energy demand in Asia.

bp’s chief executive officer, Murray Auchincloss made the announcement during a meeting which included Indonesian President H.E. Prabowo Subianto. This meeting occurred in London and the agreement emphasises bp and partners’ strong confidence in Indonesia’s investment climate, whilst the agreement also strengthens the company’s business activities within the country.

On top of this, the investment not only meets bp’s return hurdle rates, but it is also fully accommodated within bp’s disciplined financial framework, therefore it effectively reflects bp’s interest in focusing on value and returns. Further to this, Tangguh is in an excellent location, when it comes to accessing high value regional markets, plus the investment also highlights bp’s commitment to meeting energy demand for Indonesia and the wider region.

It has been made clear that Tangguh CCUS has a strong aim to be the first CCUS project which has been developed at scale in Indonesia. The project also hopes to have the potential for sequestering an estimated fifteen million tons of carbon dioxide from Tangguh’s emissions, during its initial phase.

Furthermore, the UCC project, which involves the Ubadari gas field development, enhanced gas recovery through carbon capture, utilization and storage (CCUS) and onshore compression, works through expanding and utilising existing infrastructure In Indonesia, at the Tangguh LNG facility, which is located in Papua Barat. It has been stated that production at the Ubadari field will be starting in 2028.

The Government of Indonesia has already designated this UCC project as a national strategic project and it also represents the continued development of Tangguh. This follows the addition of the third LNG train, which started operating in 2023, whilst it simultaneously brought total plant liquefaction capacity to 11.4 million tonnes on an annual basis.

bp CEO,  Murray Auchincloss, commented, “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.”

CEO of bp, Murray Auchincloss, added, “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.”