Government of Indonesia Approved Extension of the Production Sharing Contract (PSC) for Tangguh LNG Project

Dec. 23, 2022

Mitsubishi Corporation
JX Nippon Oil & Gas Exploration Corporation
Sumitomo Corporation
Sojitz Corporation

We, the joint venture partners of the Tangguh LNG Project led by bp, the project operator, are pleased to announce that the Government of Indonesia has approved a 20-year extension of Tangguh Production Sharing Contract (PSC). The Tangguh PSC consists of Berau, Muturi and Wiriagar PSCs.

Tangguh is the largest gas-producing project in Indonesia, accounting for around 20% of the country's gas output. Tangguh began operations in 2009 and has safely delivered more than 1,450 cargoes to global markets including Indonesia and Japan. It has two LNG production trains with a combined capacity of 7.6 million tonnes of LNG a year, with a third LNG train in Tangguh (Tangguh Train 3) currently under construction. With Tangguh Train 3, we will increase Tangguh's production by approximately 50%.

In addition to building Tangguh Train 3, we are planning the next phase of the development including Carbon Capture Utilization and Storage (CCUS) project, which is based on the Plan of Development approved by SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities Republic of Indonesia) in 2021. Once the CCUS project is implemented, which is subject to a final investment decision by Tangguh partners, it will remove up to 90% of the reservoir-associated CO2 which represents nearly half of Tangguh LNG emissions, making Tangguh one of the lowest GHG intensity LNG plants in the world.

With the extension of the PSC, we will contribute to stable supply of LNG as well as reduction of CO2 emission.

Notes to editors

The Tangguh LNG Project is located in Papua Barat Province of Indonesia. It is operated by BP Berau Ltd on behalf of the other production sharing contract partners as contractor to SKK Migas. BP Berau Ltd and its affiliates in Indonesia hold a 40.22% interest in the project. Other Tangguh production sharing contract partners are MI Berau B.V. (16.3%), CNOOC Muturi Ltd. (13.9%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau Petroleum Ltd (8.56%), Indonesia Natural Gas Resources Muturi Inc. (7.35%) and KG Wiriagar Petroleum Ltd (1.44%).

Tangguh is currently the largest gas producing field in Indonesia with 1.4 billion cubic feet (Bcf) per day of gas production through two LNG trains and will reach 2.1 Bcf per day once Train 3, currently under construction, is online.

Tangguh Train 3 is a National Strategic Project as decreed by the Government of Indonesia.

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