BP, Inpex Projects in Indonesia Awaits Government Approval
BP plc expects approval for an environmental study relating to the proposed expansion of the company's Tangguh liquefied natural gas (LNG) plant in Bintuni Bay, West Papua, Indonesia in April or May, according to BP Indonesia's head Dharmawan Samsu as quoted in the Jakarta Post Wednesday.
Hearing on Tangguh project’s environmental study had been completed and official approval is needed before BP can add a third train - with a capacity of 3.8 million tons per year - at the site. The Tangguh LNG project now has two trains, which can produce around 7.6 million tons per year of LNG.
“We are also expecting to announce the winner of the FEED (front-end engineering and design) tender for the Tangguh expansion soon. Moreover, we are in the final stages of a discussion with (state-owned electricity firm) PT PLN about an electricity sale and purchase agreement,” Dharmawan said.
The final investment decision for the $12-billion Tangguh expansion is expected in 2015, with completion of work scheduled for 2019.
Separately, the Indonesian government is still studying a request by operator Inpex Masela Ltd. for contract extension of deepwater Masela block - which includes the Abadi field that holds an estimated proven reserves of 6.05 trillion cubic feet (Tcf) of gas - in the Arafura Sea in eastern Indonesia to 2048.
“We are evaluating it (the contract extension request). The Masela project must go ahead,” Indonesia's Deputy Energy and Mineral Resources Minister Susilo Siswoutomo told Jakarta Post.
Inpex hopes to secure more certainty for the project from the Indonesian government as Abadi development is expected to come onstream only in 2018, leaving the firm with only 10 years for production before the Masela block contract expires in 2028, according to Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) deputy planning head Aussie Gautama as reported in the Indonesia daily.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 27 Offshore Rigs
- BP Chairman Svanberg to Retire; Search Starts for Successor (Oct 19)
- BP Midstream Partners Seeks To Raise Up To $893MM In IPO (Oct 16)
- BP, Azerbaijan's SOCAR To Sign Caspian Sea Exploration Deal In 2017 (Oct 12)
Company: Inpex more info
Operates 1 Offshore Rigs
- Statement: Indonesia To Extend Inpex's Masela LNG Contract By 27 Years (Oct 19)
- Ichthys LNG Subsea Contract Goes to Wood Group (Sep 06)
- Australia's $180B LNG Megaproject Boom Enters Final Stretch (Aug 14)
Company: Special Task Force for Upstream Oil and Gas Business Activities more info
- Indonesian Banks Join Global Lenders to Provide Finance for Tangguh Project (Aug 05)
- Indonesia Rejects Exxon Proposal To Boost Cepu Block Output (Jun 14)
- Survey Shows Most Indonesian Upstream Firms Likely to Cut Workforce in 2016 (May 31)