Tangguh to Go for Further Development

Indonesia’s oil and gas upstream regulator BPMigas is ready to approve Plan of Further Development (POFD) for gas field in Tangguh, Papua.

Indonesia Today, citing Widhyawan Prawiraatmadja, planning deputy for BPMigas, has said in a report that technical and administrations issue regarding POFD have complied with the regulation but BP Berau Ltd as the operator for Tangguh block still needs to clarify on cost structure.

He said BP Berau Ltd will also clarify on efforts to maintain the state revenue from Train 1 and 2 of Tangguh. "We want the state revenue from Train 1 and 2 will not decline along with the development of Train 3 Tangguh LNG refinery," Prawiraatmadja said.

BPMigas and the government have successfully negotiated to switch LNG supply from Sempra, United States, to other buyers with higher price, the newspaper said. 

Based on contract, Tangguh LNG refinery will supply 3.7 million metric tons of gas per year to Sempra and 50% of that could be switched to other buyers if the price would be higher. But after renegotiation, 90% of Tangguh LNG supply now can be switched to other buyers with higher price.