BP said final approval has been given for the development of the Tangguh Expansion Project in Indonesia creating up to 10,000 new jobs.
The oil major said the project will add a third LNG process train as well as additional production capacity to the existing facility.
The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility and supporting infrastructure.
BP chief executive Bob Dudley said:“The Tangguh Expansion Project demonstrates BP and its partners’ continued confidence in Indonesia and our commitment to work closely with the government to meet the country’s energy needs, while creating thousands of jobs.
The Tangguh Expansion Project will also bring a positive contribution to Indonesia and the Papua Barat Province starting in 2016, supporting economic growth and providing 10,000 valuable jobs spread over the project period.
Tangguh is currently making positive local social and economic impacts through its comprehensive community development programs and providing much needed electricity for the Teluk Bintuni Regency.
Christina Verchere, BP regional president Asia Pacific, said: “This final investment decision marks the culmination of many years of hard work by BP, our partners, and the Indonesian Government. We are pleased to reach this major milestone and look forward to continued cooperation as we progress the largest upstream project in the eastern part of Indonesia.”
This FID decision follows the Government of Indonesia’s approval of the Plan of Development II in late 2012. Awards for the project’s key engineering, procurement and construction (EPC) contracts are expected in the third quarter of 2016 with construction to begin thereafter. Operation is expected in 2020.
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