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bp signs MoU to support Pertamina’s study on potential CO2 injection in Tangguh

Release date:
20 September 2023

JAKARTA – BP Berau Ltd (bp), the operator of Tangguh and is acting on behalf of Contractors of Tangguh PSCs and PT Kilang Pertamina Internasional (Pertamina), a subsidiary of PT Pertamina (Persero), today inked a Memorandum of Understanding (MoU) on a cooperation to support a study to be carried out by Pertamina on potential gas supply and CO2 injection in Tangguh related to potential blue ammonia development in Teluk Bintuni, Papua Barat.

 

Tangguh PSC Contractors consist of bp and its affiliates in Tangguh, MI Berau B.V., CNOOC Muturi Limited., Nippon Oil Exploration (Berau), Limited, KG Berau Petroleum Ltd., Indonesia Natural Gas Resources Muturi, Inc., KG Wiriagar Petroleum Ltd.

 

Signed at the 2023 Indonesia Oil & Gas (IOG) Forum that takes place on 20-22 September 2023 in Nusa Dua, Bali, the study by Pertamina aims to support potential growth in the petrochemical industry, specifically in Papua Barat as an effort to help boost the local economy. This MoU is also paving the way for bp and Pertamina to support energy transition by delivering clean energy product through Tangguh CCUS.

 

The Tangguh CCUS project carried out by bp has received development plan approval from the Government of Indonesia in 2021, ongoing FEED work and planned project sanction in the near future. Tangguh is well-positioned and has potential to become the country’s first CCS hub for domestic and international emitters.

 

Pertamina is currently studying the opportunity to optimize the gas supply potential in Teluk Bintuni, Papua Barat, while utilizing Tangguh CCUS mentioned above to produce blue ammonia, one of the clean energy alternatives for the future. This collaborative effort could be a breakthrough in paving clean energy production routes from the country.

 

Kathy Wu, bp Regional President Asia Pacific, Gas & Low Carbon Energy, remarks: “As an energy company who has been in Indonesia for more than five decades, we are pleased to support Pertamina and the Government of Indonesia in their net zero agenda through potential gas supply and CO2 injection in Tangguh. This MoU signifies our strategic cooperation with Pertamina.” 

 

Taufik Aditiyawarman, CEO of PT Kilang Pertamina Internasional, stated: “PT Kilang Pertamina Internasional is committed to solve the Energy Trilemma by providing not only sufficient and affordable, but also sustainable energy to the country by aggressively exploring new alternative clean energy, including Blue Ammonia, which is a key driver to clean electricity production with co- firing. As a downstream refinery & petrochemical player, PT KPI collaboration with upstream O&G company to bring CCS technology is an essential factor to achieve Blue certification by reducing more than 70% of its CO2 emission from the Ammonia production process. This MoU is a starting point of collaborative effort between Pertamina and bp to support net zero agenda which has been an important commitment of the Government of Indonesia. 

About bp Indonesia

All bp businesses have a footprint here, with Tangguh LNG as the largest gas producer in the country, Castrol in lubricants, trading, while growing the latest entry in retail and aviation fuel, with total investment of $15 billion to date. In Papua Barat, bp’s presence comprises Tangguh LNG, offshore wells and facilities. Tangguh is the largest gas producer in Indonesia, contributing ~20% of national gas production, recording a total investment of ~US$10 billion. By the time Train 3 is fully operational, Tangguh three-train business would contribute about 35% of national production.

 

About KPI

PT Kilang Pertamina Internasional is a subsidiary of PT Pertamina (Persero) and carries out the main business of processing oil and petrochemicals by ESG (Environment, Social & Governance) principles. PT KPI has also been registered with the United Nations Global Compact (UNGC) and is committed to the UNGC's Ten Universal Principles in operational strategy and implementation of ESG aspects. PT KPI will continue to run its business professionally to realize its vision of becoming a world-class Oil Refinery and Petrochemical Company that is environmentally aware, socially responsible, and has good corporate governance.

Further information

Dadan Wijaksana, communications advisor Indonesia <dadan.wijaksana@se1.bp.com >