BP and its partners have secured a 20-year extension from the Indonesian government for the Tangguh production sharing contract (PSC) to the year 2055.

The Tangguh PSC consists of the Berau, Muturi, and Wiriagar PSCs.

The extension is expected to allow BP and its partners to operate the Tangguh gas field beyond the PSC’s original expiry date of 2035.

The associated Tangguh liquefied natural gas (LNG) facility in Papua Barat Province has been operating since 2009. The two-train LNG project is located near Bintuni Bay, Teluk Bintuni Regency.

The two LNG production trains have a combined annual liquefaction capacity of 7.6 million tonnes of LNG. A third train is currently under construction.

The new train is expected to be operational in 2023 and will increase the production capacity of the Tangguh facility by nearly 50%.

The other shareholders in Tangguh PSC are MI Berau with a 16.3% stake, CNOOC Muturi with a 13.9% stake, Nippon Oil Exploration (Berau) with a 12.23% stake, KG Berau Petroleum with a 8.56% stake, Indonesia Natural Gas Resources Muturi with a 7.35% stake, and KG Wiriagar Petroleum with a 1.44% stake.

Besides the development of the Tangguh train 3, BP and its partners are expecting to develop the Tangguh UCC project, which has secured plan of development approval from the Indonesian government in 2021.

The project calls for the development of the Ubadari gas field, enhanced gas recovery with the implementation of carbon capture, utilisation, and storage (EGR/CCUS) in the Vorwata field, and onshore compression.

The CCUS project, subject to a final investment decision by Tangguh PSC partners, is expected to eliminate up to 90% of the reservoir-associated carbon dioxide.

BP gas and low carbon energy executive vice president Anja-Isabel Dotzenrath said: “This extension reflects bp’s long-term commitment to Indonesia. It will allow us to continue to build on the great work that our Indonesia team has been doing – with our partners and the strong support of the Government – to deliver much-needed natural gas safely and reliably from Tangguh to Indonesia and other markets. Today’s agreement will help open new possibilities for Tangguh’s future.”

The Tangguh LNG project is operated by BP Berau and its affiliates in Indonesia with a stake of 40.22%.