Coordinating Minister for Maritime and Investment Affairs, Pak Luhut Panjaitan,
Minister of Energy and Mineral Resources, Pak Arifin Tasrif,
Minister of Finance, Ibu Sri Mulyani,
Minister of Investment, Pak Bahlil Lahadalia (bah-lil, la-ha-da-lia),
Chairman of SKK Migas, Pak Dwi Soetjipto,
Thank you for the invitation to participate at this important event.
It is both an honour and a pleasure to do so.
It’s an honour because bp is very proud of its relationship with Indonesia.
We believe we make a winning combination.
With the Government of Indonesia.
And the people in the communities we serve.
And it is a pleasure because our work in Indonesia is a success story.
bp is proud to be the country’s largest UK investor.
Entrusted by the government.And as we make progress towards safe start up of Tangguh Train 3, we will become Indonesia’s largest natural gas producer, which makes us exceptionally proud.
It will enable us to produce more than a third of Indonesia’s gas.
All from one facility in a remote area in West Papua.
I’m told it is the weight of two Eiffel Towers in Paris.
And it is indeed a heavyweight in its importance to Indonesia and for its people.
And we were delighted and very grateful to have extended our Tangguh production sharing contract last year to 2055.
Reaffirming our commitment to Indonesia for the long term.
We have been a guest in your beautiful country for 50 years and are committed to stay for the next 50 years.
In all honesty, signing the contract extension was an easy decision to take.
And that’s thanks to the deep relationship we have with this country.
We share many of the same values, interests, and goals.
And together we are a winning combination.
There are three reasons for this.
First, we trust each other.
Indonesia is a beacon of political stability, and it is known for its consistent policy.
We welcome this. To international investors, stability and predictability are paramount.
It means we know where we stand and what to expect.
This instils confidence, builds trust.
Creates the right environment for investment.
Second, we work closely together – supplying energy as demand increases – and doing it safely.
We safely produce the energy that people rely on for heat, light, and transport – secure energy.
That’s especially important for the vibrant, growing economy of Indonesia, where the demand for energy is set to double by the end of this decade.
We’re helping meet this demand through Tangguh.
Through our participation in the Andaman II block.
And hopefully soon through unlocking the vast potential in the Agung offshore gas blocks.
But our work is not confined to deepwater / natural gas. Far from it.
bp’s strategy is also about investing in the energy system of tomorrow.
We call it our “AND not OR” strategy.
One that reflects the world’s need for secure, affordable, and lower carbon energy.
Which means investing in oil and gas to keep energy flowing where it is needed today, as we are doing in Indonesia.
AND – not OR – it requires investment in the energy transition.
Investing heavily in lower carbon energy and cutting carbon emissions to help the world get to net zero.
This is the third way that bp and Indonesia are a winning combination. We are looking to the future, together.
This nation knows better than most the threats of climate change and its impact on rising sea levels.
And we applaud President Jokowi and his government for their actions to help mitigate such risks.
Through its ambitious net zero plans.
And also, in how it has galvanized international support.
The securing of critical finance with the G7 through the Just Energy Transition Partnership.
And, in Indonesia’s support for international investment and positive relationships with companies like bp.
Like Indonesia, bp has plans to get to net zero. We want to be part of the solution and help the world get there too.
And we are ready, and already in action, working with Indonesia as it progresses towards net zero.
As the home of major oil and gas operations for many decades, Indonesia is blessed with plentiful CO2 storage capacity in the form of depleted hydrocarbon reservoirs.
Enormous potential also exists in country’s saline aquifers.
Working with partners on the Tangguh CCUS (carbon capture, utilisation and storage) project, bp is helping decarbonize the natural gas produced at Tangguh, and much more.
We are confident that we can turn Tangguh CCUS, a Strategic National Project, into Indonesia’s 1st carbon capture and storage hub.
We’re very excited about this at bp.
The CCUS project expects to see more than 30 million tonnes of CO2 reinjected into the Vorwata reservoir, reducing Tangguh’s emissions by 50%.
And that is just the beginning.
There is the potential to store much, much more – up to 1.8 giga tonnes.
This means that together, with our investment, the CCUS project has the potential to create one of the lowest carbon-intensity LNG facilities in the industry.
Not just in the Asia-Pacific region, in the world.
Therefore, propelling Indonesia to the top of the global league for decarbonizing gas.
It’s a prize worth pursuing.
And we are working with the government on the necessary regulatory framework and associated policies to help achieve it.
bp is ready to help explore opportunities for renewable energy too.
Helping achieve Indonesia’s ambition for zero-carbon power generation.
Now, I said there were three reasons that bp and Indonesia are a winning combination.
But there is one final, very important way in which we win together.
And that is people.
The energy transition will only succeed if local communities are at the heart of the change.
The Indonesian government goes to great lengths to support local communities.
And bp is very clear in its ambition to help improve people’s lives in the communities we serve.
We are super-proud to say that the 99% of our team at Tangguh are Indonesian.
Currently, almost three quarters of that workforce are Papuan, and we expect this to increase to 85% by 2029.
And since 2006, we’ve invested more than $50 million on programmes spanning health, education, community development and much more.
One example is how bp helped to eradicate malaria in the Bintuni Bay area, winning a United Nations UN award in 2018.
The energy transition will only really succeed if it is just.
And fairness is at the heart of our commitment to Indonesia’s communities.
So, let me conclude.
As you have heard, and as I hope you agree, bp and Indonesia are a winning combination.
Winning in our relationship and how we do business in this beautiful country.
Winning in safely securing energy for the Indonesian people.
Winning in making sure that energy will be lower carbon.
And winning in improving people’s lives in the communities we serve.
Ours is a successful story.
And it has only just got going.
The extension to the production sharing contract that we signed last year for Tangguh means we are committed to Indonesia for at least another 30 years.
That is the same timeframe as Indonesia’s transition to net zero – by 2060 or sooner.
We are committed to you for the long term.
I’m excited about the opportunities that lay ahead.
And I greatly look forward to discussing these with you in the months and years ahead.
As we continue to work together and win together.