bp advances Indonesia growth with three new PSCs and Tangguh UCC milestone
bp has expanded its position in Indonesia with three newly awarded production sharing contracts (PSCs) near Tangguh LNG and in East Java. The company also has progressed the Tangguh Ubadari, CCUS, Compression (UCC) project with the first offshore jacket now en route to site, marking a key step toward sustaining gas output and incorporating large‑scale carbon capture.
Three production sharing contracts inked in Indonesia
bp and its partners have signed three PSCs in Indonesia.
Two are for the offshore Bintuni and Drawa exploration blocks, close to the bp-operated Tangguh LNG in Papua Barat, with perceived short-cycle development potential.
The other PSC is the INPEX-operated Barong Block in East Java. All were awarded under the second Indonesia Petroleum Bidding Round 2025 arranged by the Ministry of Energy and Mineral Resources of Indonesia.
For the Bintuni and Drawa blocks, bp’s partners are CNOOC Southeast Asia, MI Berau (a joint venture between INPEX and Mitsubishi), and Indonesia Natural Gas Resources Muturi (an LNG Japan corporation).
For Barong, INPEX has a 51% position and bp 49%.
First Tangguh UCC jacket ready to sail
bp also confirmed that the first platform jacket for the Tangguh UCC project is ready to depart for the offshore installation site in Fakfak regency, Papua Barat province.
It has been loaded onto a transport barge at the Saipem Karimun Yard and will travel about 5,800 km to the offshore location.
All main equipment for the offshore scopes, such as the Ubadari jacket and topsides, have benn fabricated in the contractor's yard in Karimun. All offshore line pipes are being coated in East Java.
For the onshore scopes, modules are under construction by Indonesia fabricators in Bintan and Batam, with other equipment such as instruments, piping and electrical machinery also procured in country.
The Tangguh UCC project involves the offshore Ubadari gas field development, enhanced gas recovery through carbon capture, utilization and storage (CCUS), and onshore compression to sustain throughput at Tangguh LNG.
This is Indonesia's largest gas producer, bp said, supplying 35% of the country’s gas.
The project, which should recover a further 3 tcf of gas, includes offshore platforms, CCUS facilities and onshore compression, and will expand the existing Tangguh LNG infrastructure in Papua Barat.
It is also said to be the first CCUS scheme developed at scale in Indonesia, potentially sequestering about 15 MMmt of CO2 from Tangguh’s emissions in its initial phase.
About the Author
Jeremy Beckman
Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.