BP to Invest $7 Billion in Carbon Capture Project in Indonesia

BP has announced a $7 billion investment in Indonesia’s Papua region. The funds will go towards a carbon capture project and gas field development. The project could unlock 3 trillion cubic feet of additional gas resources. BP revealed the investment during a meeting with Indonesian President Prabowo Subianto in London.

Ubadari Gas Field and Carbon Capture Project

The investment will focus on the development of the Ubadari gas field, with production expected to start in 2028. Gas from this site will be processed at BP’s existing Tangguh liquefied natural gas (LNG) facility in West Papua.

BP also announced plans to use CO2 recovered from its first carbon capture, utilization, and storage (CCUS) project in Indonesia. The CO2 will be used to boost production at the Tangguh liquefied natural gas facility in West Papua.

BP highlighted that this CCUS project has the potential to sequester approximately 15 million tonnes of CO2 during its initial phase. This initiative will not only help reduce emissions but also enhance the production capacity at the Tangguh facility.

President Prabowo Optimistic Indonesia Will Achieve Net Zero Before 2050

Partnership and Economic Impact

President Prabowo highlighted the importance of the deal, noting that British companies, including BP, have committed to investing $8.5 billion in Indonesia. These investments will support the country’s energy transition, infrastructure, education, and health sectors. Prabowo emphasized that these commitments reflect the optimism British firms have in Indonesia's economic future.

Indonesia and Japan Launch Bilateral Carbon Trading Agreement

Collaborative Effort for a Sustainable Future

BP’s new project in Indonesia is part of the Tangguh Production Sharing Contract, where BP owns a 40.2% stake. Other partners in the project include China’s CNOOC, Japan’s Mitsubishi Corp, Inpex Corp, and the Japan Oil, Gas and Metals National Corp. The project was approved by Indonesia’s oil and gas regulator in 2021.

The collaboration between BP and these international partners underscores the global effort to balance energy development with sustainable practices. As the world increasingly focuses on reducing carbon emissions, BP’s investments in carbon capture and gas development align with global energy transition goals. This project marks a significant step in Indonesia’s efforts to grow its energy sector while reducing its carbon footprint.