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BP and partners to invest $7 billion in carbon capture project in Indonesia’s Papua
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JAKARTA (Reuters) – BP and partners said they would invest $7 billion in a carbon capture project and gas field development in Indonesia’s easternmost Papua region that could unlock 3 trillion
JAKARTA (Reuters) – BP and partners said they would invest $7 billion in a carbon capture project and gas field development in Indonesia’s easternmost Papua region that could unlock 3 trillion cubic feet of additional gas resources.
The British oil and gas producer announced the investment on Thursday in a meeting with President Prabowo Subianto who is visiting London.
Production at Ubadari field is scheduled to start in 2028 and gas from the site will be processed at the company’s existing Tangguh liquefied natural gas facility in West Papua, it said in a statement.
BP added that CO2 recovered from its first carbon capture, utilisation and storage project in Indonesia would be used to boost production at the Tangguh facility.
The project has the “potential for sequestering around 15 million tonnes of CO2 from Tangguh’s emissions in its initial phase,” the energy giant said.
Prabowo said British firms have committed to invest $8.5 billion in Indonesia’s energy transition, education, infrastructure and health sectors, including the $7 billion BP project.
“This shows their optimism in our economy,” Prabowo said in a separate statement on Thursday.
The project is part of the Tangguh Production Sharing Contract operated by BP, which owns 40.2%, on behalf of the other production-sharing contract partners, including China’s CNOOC and Japan’s Mitsubishi Corp, Inpex Corp and Japan Oil, Gas and Metals National Corp.
It was first approved by Indonesia’s oil and gas regulator in 2021.
(Reporting by Stanley Widianto and Bernadette Christina; Editing by Tom Hogue and Saad Sayeed)
Carbon capture is a technology used to prevent carbon dioxide from entering the atmosphere by capturing it from sources like power plants and storing it underground.
Liquefied natural gas (LNG) is natural gas that has been cooled to a liquid state for ease of storage and transport. It is primarily used for energy production.
A gas field is a region with a significant concentration of natural gas deposits that can be extracted for commercial use.
Sequestering CO2 refers to the process of capturing and storing carbon dioxide emissions to prevent them from entering the atmosphere, thereby mitigating climate change.
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