BP, representing the Tangguh production-sharing contract partners, has announced a final investment decision (FID) for the $7bn Tangguh Ubadari carbon capture, utilisation and storage (CCUS) compression project (UCC).
The initiative is set to unlock approximately three trillion cubic feet (tcf) of additional gas resources in Indonesia, addressing the growing energy demand in Asia.
bp CEO Murray Auchincloss made the announcement during a meeting with Indonesian President HE Prabowo Subianto in London.
Auchincloss stated: “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 55 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.”
The UCC project encompasses the Ubadari gas field development, enhanced gas recovery via CCUS, and onshore compression.
The development aims to expand and utilise the existing infrastructure at the Tangguh liquefied natural gas (LNG) facility in Papua Barat, Indonesia. Production at the Ubadari field is anticipated to commence in 2028.
The project also includes extending the gas feed to Tangguh LNG through the development of the Ubadari field, with the potential to reduce Tangguh LNG’s operational emissions through CO₂ sequestration.
Upon completion, Tangguh EGR/CCUS will feature three injection wells, one offshore injection platform, an offshore CO₂ pipeline, and onshore facilities for CO₂ removal, processing and compression.
Tangguh CCUS is poised to become the first CCUS project developed at scale in Indonesia, with an initial phase potential to sequester around 15 million tonnes (Mt) of CO₂ from Tangguh’s emissions.
It has been designated a national strategic project by the Indonesian Government, marking its continued development after the third LNG train began operation in 2023, increasing total plant liquefaction capacity to 11.4 million tonnes per annum.
bp operates Tangguh with a 40.22% participating interest, alongside partners MI Berau (16.3%), CNOOC Muturi (13.9%), Nippon Oil Exploration (Berau) (12.23%), KG Berau Petroleum (8.56%), KG Wiriagar Petroleum (1.44%), and Indonesia Natural Gas Resources Muturi Inc. (7.35%).
