The BP-operated Tangguh LNG project in West Papua, Indonesia has received approval in principal from the Indonesian Ministry of Energy & Mineral Resources and oil & gas agency BPMIGAS for a Plan of Further Development (POFD). This expansion involving development of a third 3.8mtpa LNG train costing $12 billion was announced after a bilateral meeting in London between UK prime minister David Cameron and Indonesia president Susilo Bambang Yudhoyono, attended by BP Group CEO Bob Dudley, and William Lin, BP regional president Asia Pacific.
In the run up to a final investment decision expected in 2014, tendering for front end engineering and design services has started in anticipation of operations starting in late 2018. All three trains will have total LNG capacity of 11.4mtpa. BP and partners have agreed to supply 40% of LNG output from the third train to state electricity company PT PLN (Persero).
Total has started up the South Mahakam Gas Project, offshore East Kalimantan. Total E&P Indonesie, project operator in 50:50 joint venture with Inpex, will implement phased development of the Stupa, West Stupa and East Mandu condensate fields and the Jempang and Metulang gas fields, located about 35km southeast of Balikpapan and 80km south of the Mahakam Delta in water depths of 45-60m. Phase one involves the installation of three platforms and drilling nineteen wells.
Production is expected to reach an average of 69,000boe/d by end-2013, to be exported through a new pipeline to the Senipah onshore terminal, a portion of the gas to be sent for liquefaction at the Bontang LNG plant.
The Indonesian Ministry of Energy & Mineral Resources is offering 23 new production sharing permits located on-and offshore Sumatra, onshore Kalimantan, in the Makassar Strait, Java Sea, East Nusa Tenggara Sea, Natuna Sea and West Papua, seven blocks through a regular bidding process and 16 blocks directly. The concessions include West Asri, Merangin III, Bimasakti, Central Mahakam, Sangau, Menduwai, Kahayan, North East Sepanjang, Offshore North X-Ray, Seringapatam I and II, West Tuna, Wanapiri and West Misool.
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