BP and its partners invest $7 billion into a carbon capture project in Indonesian Papua

BP and its partners announced that they will invest $7 billion into a carbon-capture project and the development of gas fields in Indonesia's easternmost Papua Region, which could unlock an additional 3 trillion cubic feet in gas resources.

The British oil producer announced its investment in London on Thursday during a meeting between President Prabowo Subito, who was visiting London.

The company said that production at Ubadari is expected to begin in 2028. Gas from the field will be processed in the Tangguh liquefied gas plant in West Papua.

BP said that the CO2 recovered from their first carbon capture and storage project in Indonesia will be used to boost production of the Tangguh plant.

According to the energy giant, the project "has the potential to sequester around 15 million tonnes CO2 from Tangguh’s emissions in its first phase."

Prabowo announced that British companies have committed to investing $8.5 billion into Indonesia's education, infrastructure, and health sectors. This includes the $7 billion BP Project.

In a separate Thursday statement, Prabowo stated that "this shows their optimism about our economy."

The project is part the Tangguh Production Sharing Contract, operated by BP, who owns 40.2%, for the other production sharing contract partners, including China’s CNOOC and Japan’s Mitsubishi Corp, Inpex Corp and Japan Oil, Gas and Metals National Corp.

The first approval was given by Indonesia's oil regulator in 2021. (Reporting and editing by Tom Hogue, Saad Sayeed and Bernadette Cristina; Reporting by Stanley Widianto)

(source: Reuters)