BP in Indonesia
With the BP-operated Tangguh LNG project underway, Indonesia is set to maintain its position as one of the world’s most important sources of liquefied natural gas
What we do
BP Indonesia is one of the largest foreign investors in this country, with investment of around US$5 billion to date. Every BP mainstream business is represented here, from upstream (Tangguh LNG and VICO) to downstream (Castrol) and petrochemicals (PT AMI).Two important events led to BP's current position in Indonesia. The first was the acquisition of ARCO in 2000. The second was the go-ahead by the Indonesian Government on 6 March 2005 for the Tangguh Liquefied Natural Gas (LNG) project in Bintuni Bay of Papua Barat.
The first cargo of LNG from Tangguh, on board the Tangguh Foja, was sent on July 6, 2009, to POSCO’s LNG regasification terminal in Gwangyang in South Korea.
The Tangguh project has long term contracts in place to supply 2.6 million tonnes of LNG a year to the Fujian terminal in China, 1.15 million tonnes a year to K-Power and POSCO in South Korea, and a flexible contract to supply up to 3.7 million tonnes a year to Sempra's LNG regas terminal in Baja California, Mexico.
We have a joint venture with Italy’s ENI in VICO Indonesia, which operates the Sanga-Sanga development in East Kalimantan. Sanga-Sanga delivers gas to Bontang LNG plant, one of the largest LNG plants in the world.
Merak is home to our Cilegon plant, a 50/50 joint venture between BP and Mitsui operating as PT Amoco-Mitsui Indonesia (AMI). It has been in operation since 1997 and produces purified terephthalic acid (PTA), a raw material of polyester fiber and polyester resin.
Also located in Cilegon is Castrol's fully automated lube oil blending plant. Castrol is now recognized as the top international brand in Indonesia.
Merak is home to our Cilegon plant, a 50/50 joint venture between BP and Mitsui operating as PT Amoco-Mitsui Indonesia (AMI). It has been in operation since 1997 and produces purified terephthalic acid (PTA), a raw material of polyester fiber and polyester resin.
Also located in Cilegon is Castrol's fully automated lube oil blending plant. Castrol is now recognized as the top international brand in Indonesia.
Our social commitment
The Tangguh project has adopted a fully integrated approach to development and its impact on local communities. A wide range of integrated social programmes have been implemented, including a community based approach to security and a commitment to maximise employment opportunities for local people during both the construction and the subsequent operating phases. Activities are taking place at all levels, from specific programmes in those villages closest to the project site to wider initiatives across the Bird’s Head region and throughout Papua.The Tangguh Project has also set new standards in transparency and has made reports from external panels such as TIAP and the External Performance Monitoring Panel on Resettlement available to all stakeholders. Copies of the most recent reports can be found on the TIAP page in the Environment and Society section of this website.
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