The deal was signed as part of an expansion plan for the Tangguh LNG project in Papua Barat province and support PLN in providing electricity for Teluk Bintuni Regency.
BP Group chief executive Bob Dudley said, "Tangguh is a significant asset for the company that helps underpin its significant gas value chain business across the Asia Pacific region."
BP Asia Pacific regional president William Lin said, "This MoU reflects the company’s intention of supporting the economic development of Papua Barat, and helping meet the growing demand for energy in Indonesia as a whole, balancing the needs of all key stakeholders."
The agreement will also ensure the delivery of LNG for domestic power plant purposes and supply electricity to meet the demand of local communities and small and medium-sized enterprises in Teluk Bintuni Regency and adjacent areas.
As per the long-term deal, BP will supply 230 million cubic feet of gas per day (mmscfd) to PLN from the Tangguh refinery in West Papua beginning 2013.
BP Indonesia as contractor to BPMIGAS is the operator of Tangguh LNG project with a 37.16% stake.
Other partners include MI Berau with 16.30%, CNOOC at 13.90%, Nippon Oil Exploration at 12.23%, KG Berau/KG Wiriagar at 10), LNG Japan Corporation at 7.35% and Talisman at 3.06%.
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