Green light for US$7Bn Indonesian offshore gas, carbon capture project

“This project not only unlocks gas resources, it also represents an Indonesian first through the use of CCUS to maximise gas recovery,” said BP chief executive Murray Auchincloss. He acknowledged support of the Indonesian government and other project partners in enabling this CCUS project to progress.

Saipem said its share of the contract is valued at around US$1.0Bn and local construction facilities and vessel owners would be included in the work.

The platforms will be fabricated locally in Karimun, Saipem’s largest yard worldwide and one of the largest in southeast Asia, with its own marine base and docks.

Offshore operations are expected to be undertaken in 2026 and 2027 and BP expects gas production from the Ubadari field to start in 2028. This is likely to require a fleet of barges, a pipelayer, heavy-lift cranes vessel and associated support vessels, while the wells will be drilled in shallow water by jack-up rigs, also supported by supply vessels.

The UCC project has been designated as a national strategic project by the Indonesian government and represents the continued development of Tangguh.

This follows the addition of the third LNG production train, which began operation in 2023 and brought total plant liquefaction capacity to 11.4M tonnes per year.

BP is the operator of Tangguh LNG, with a 40.22% participating interest, acting on behalf of Tangguh production-sharing contract partners. Other partners are MI Berau (16.30%) CNOOC Muturi (13.90%), Nippon Oil Exploration (Berau) (12.23%), KG Berau Petroleum (8.56%), KG Wiriagar Petroleum (1.44%), and Indonesia Natural Gas Resources Muturi. (7.35%).  

Riviera’s Offshore Support Journal Conference, Middle East will return to Dubai, UAE, 11-12 December 2024, bringing together the industry’s leading vessel owners, oil and gas companies, EPC contractors, technology and service providers to discuss opportunities, challenges and strategies to succeed in a booming offshore market