"The project is running according to schedule," BPMIGAS Chairman Kardaya Warnika said in Jakarta recently.
BP Berau is in charge of Tangguh project in Bintuni Bay, west Papua. The project involves the development of fields to supply the natural gas and the construction of an LNG plant with a capacity of 7.6 million tons per annum.
Field development to feed natural gas to the Tangguh LNG plant is conducted in three areas, namely Wiriagar, Berau and Muturi. The areas are expected to supply 1.5 billion cubic feet a day with an investment of $1 billion. The field development is 70 percent completed.
Aside from the LNG plant, gas processing facilities (GFP) will also be built in Tangguh. The GFB installation is 70% underway and is expected to be completed by the fourth quarter of 2007. At least 8,200 workers are involved in developing this project.
BP has signed loan agreements of US$2.616 billion on Aug. 1, 2006, to finance the project. The loans came from JBIC at US$1.2 billion, ADB at US$350 million, and a group of commercial banks at US$1.066 billion. The remaining requirement of US$884 million will be secured from Chinese lenders.
Kardaya said that negotiations with the Chinese lenders are continuing. "Funding from China is not impacting the project. BP guaranteed the project will continue, with or without Chinese financing," he said.
BP owns 37.16% stake in Tangguh. The other owners are CNOOC with 16.99%, MI Berau BV 16.3%, Nippon Oil Exploration Ltd 12.23%, KG Berau/KG Wiriagar 10% and LNG Japan Corporation 7.35%.
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