BP invests $7 billion in West Papua energy project in Indonesia

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BP will invest US $7 billion in West Papua, Indonesia, for Ubadari project development, CCUS technology and natural gas compression facilities. It is supported by the Indonesian government and is expected to increase national oil and natural gas production.

British Petroleum (BP) announced that it will invest up to US $7 billion (about 110.95 trillion Indonesian rupees) in West Papua, Indonesia, to promote the development of the local energy industry. The funds will be used for the development of Ubadari projects, carbon capture utilization and storage (CCUS) technology and the construction of natural gas compression (UCC) facilities.

Government support and international cooperation

Indonesian Minister of Energy and Mineral Resources Balir Rahadalia said BP's investment decision was made after a rigorous assessment of SKK Migas in cooperation with the government. The government highly appreciates and supports this investment, which it believes will significantly increase national oil and gas production, increase regional income, and have a positive impact on the environment.

Energy Industry Prospects and Commitments

Minister Balier further pointed out that the decision of BP and its partners to invest in the UCC project is a positive signal for the prospects of Indonesia's oil and gas industry, indicating that Indonesia still has the ability to attract foreign investment and is committed to promoting the development of the energy industry. He stressed that according to the instructions of the President's Prabowo Subianto, Indonesia needs to increase the level of oil and gas production, and the BP Tangguh project is the key to achieving this goal.

London Round Table and Future Planning,

on November 21, 2024, at a roundtable forum in London, the Indonesian government approved BP's investment plan. Minister Balil met with leaders of several large companies on the sidelines of the meeting, 19 of which pledged investments of about US $8.5 billion billion, highlighting optimism about the Indonesian economy.

CCUS Project and Natural Gas Reserves in

's upcoming CCUS project is the first of its kind in Indonesia and is expected to be operational in 2028. It is estimated that the UCC project's natural gas reserves reach about 3 trillion cubic feet. The project aims to store about 1.8 gigatons of carbon dioxide and initially inject about 15 million gigatons of carbon dioxide from the hard operation of the LNG facility.

UCC Project Details and Infrastructure Utilization in

the UCC project includes the development of Ubadari gas fields, the capture, utilization and storage of carbon dioxide through the CCUS method in the Vorwata field, and the installation of compressors on land to increase gas collection. These measures are aimed at expanding and utilizing the infrastructure in West Papua's existing struggling LNG facilities to promote the continued development of the energy industry.

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