bp and partners give go-ahead for Tangguh UCC project in Papua Barat, Indonesia

bp, on behalf of the Tangguh production sharing contract partners, has announced the final investment decision for the $7 billion Tangguh Ubadari CCUS and Compression Project (UCC). This project aims to unlock approximately 3 trillion cubic feet of additional gas resources in Indonesia, contributing to Asia's growing energy demands.

The announcement was made in London during a meeting between bp CEO Murray Auchincloss and Indonesian President H.E. Prabowo Subianto. This significant investment underscores bp and its partners' confidence in Indonesia's investment climate and their commitment to expanding operations in the country.

“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.”

- Murray Auchincloss, bp CEO 

The UCC project includes the development of the Ubadari gas field, enhanced gas recovery using carbon capture, utilization, and storage (CCUS), and onshore compression. It leverages and expands the existing infrastructure at the Tangguh LNG facility in Papua Barat, Indonesia. Production from the Ubadari field is anticipated to begin in 2028.

Murray Auchincloss, CEO of bp, said: “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.”

The Tangguh CCUS initiative aims to be Indonesia’s first large-scale carbon capture, utilization, and storage project, with the capacity to sequester approximately 15 million tonnes of CO2 from Tangguh's emissions during its initial phase.

Designated as a national strategic project by the Indonesian Government, the UCC project marks a significant milestone in Tangguh's development. This follows the 2023 launch of the facility's third LNG train, which increased its total liquefaction capacity to 11.4 million tonnes annually.

The investment aligns with bp’s rigorous returns criteria and is fully integrated into its disciplined financial framework, emphasizing value and returns. Strategically located to serve high-value regional markets, Tangguh underscores bp’s commitment to meeting energy demands in Indonesia and the broader region.