British Petroleum (BP) signed an Engineering, Procurement, Construction, and Installation (EPCI) onshore and offshore contract with two contractors worth US$ 3.6 billion or around IDR 56.5 trillion (exchange rate of IDR 15,700/US$). The first contractor is Saipem in a consortium with partner PT Meindo Elang Indah, and the second contractor is JGC Holdings Corporation, through its local subsidiary PT JGC Indonesia.
The contract signing was carried out today (26/11) by Procurement VP bp James Tehubijuluw, while the signatories from Saipem were Paolo Evangelista and Vincent Chan from Meindo. The signatories from JGC Indonesia were Soeryadi. Previously, the announcement of the final investment decision (FID) worth more than US$ 7 billion or around IDR 110 trillion for the Tangguh UCC Project was delivered by BP CEO Murray Auchincloss to President Prabowo Subianto in London on November 21, 2024.
The Indonesian government in meeting the increasing energy needs, achieving the national gas production target, and advancing decarbonization efforts to achieve national emission reduction goals. Djoko said that towards the end of 2024, the UCC Project had successfully achieved two important milestones in its development.
First. is the FID decision announced by BP management during a meeting with President Prabowo Subianto in London. Second, is the signing of the EPCI contract for onshore and offshore facilities. He asked BP to learn from the implementation of the Train 3 Project, so that BP must be proactive in addressing emerging problems and discussing them with SKK Migas to find efficient and effective solutions.
Meanwhile, Kathy Wu, BP regional president Asia Pacific, gas & low carbon energy said that the Tangguh Project has the potential to produce 3 trillion cubic feet of additional gas resources to meet the increasing energy needs in Indonesia and Asia, while supporting Indonesia’s decarbonization efforts through the reinjection of around 15 million tons of CO2 in the initial phase.
The Tangguh UCC (Ubadari, CCUS, Compression) project consists of the development of the Ubadari gas field, enhanced gas recovery through carbon capture, utilization and storage (CCUS), and onshore compression. This project also supports Indonesia’s decarbonization agenda by re-injecting around 15 million tons of CO₂ into the reservoir through one of the first CCUS technology applications developed on a large scale in Indonesia. It is projected to create around 6 thousand jobs during construction and provide a positive multiplier effect for the Papuan community. The Tangguh LNG workforce currently consists of 99% Indonesian citizens, 70% of whom are local Papuans.
November 26, 2024, detikFinance
(https://finance.detik.com/energi/d-7657807/raksasa-migas-inggris-teken-kontrak-proyek-tangguh-rp-56-5-triliun)