Global Biz

BP pledges to boost Indonesia investment by $10b

(Xinhua)
Updated: 2011-05-30 15:56

JAKARTA - British energy giant British Petroleum (BP) has committed to raise investment in Indonesia by more than $10 billion over the next 10 years, particularly in the massive Tangguh gas project in Papua and coal-bed methane in Kalimantan, a local media reported here on Monday.

"BP in Indonesia has invested $7 billion and we are looking at an additional $10 billion over the next 10 years," BP chief executive Robert Dudley was quoted by the Jakartaglobe as saying.

BP has a 37.16 percent interest the Tangguh liquefied natural gas project in West Papua, with proven reserves of around 14.4 trillion cubic feet of gas. The company is looking to expand its LNG plant there, which now consists of two production trains with output of at least 7.6 million metric tons of LNG a year.

"We talked about the commitment to build a third train and possibly fourth train for LNG at Tangguh Papua," Dudley said here in Jakarta.

"That investment would be billions of dollars and we will be bringing forward the proposal for approval in the next few months, " Dudley added, saying that BP was also tapping CBM projects in   Indonesia, with its subsidiary awarded three such blocks in Central Kalimantan this year.

BP, one of the top foreign investors in the country, has been operating here for 35 years.

Indonesia is seeking more investment in the oil and gas sector to meet domestic demand for energy and increase revenues.