BP Amoco says Tangguh project to benefit locals<\/p>\n
BALTIMORE, United States (JP): Oil and gas company BP Amoco
\npromised that its planned Tangguh liquefied natural gas (LNG)
\nproject in Irian Jaya would bring benefits to the locals.<\/p>\n
\"We are sure the citizens and communities of Irian Jaya will
\nbenefit from the project along with the Indonesians.<\/p>\n
\"The revenue eventually flowing into Irian Jaya from the
\nproject will be significant and the challenge will be to improve
\nthe living standards, health and education of the people,\"
\ncompany vice president John C. Gore said during a meeting with
\nPresident Abdurrahman Wahid in Baltimore, Maryland, on Sunday
\n(local time).<\/p>\n
Gore made the statement amid growing demands from the
\nresidents for larger shares in the revenues from the development
\nof their natural resources.<\/p>\n
Many oil and gas companies operating in the country have
\noften been criticized for their small contributions to the people
\nliving around their operating sites.<\/p>\n
BP Amoco has become the majority shareholder in the Tangguh
\nLNG project after recently acquiring Atlantic Richfield Company
\n(ARCO), which was the lead consortium of the project.<\/p>\n
Gore, who led BP Amoco's four executives in the meeting, also
\nexpressed gratitude for the President's personal interest and
\nactive involvement in finding long-term export markets for the
\nTangguh gas.<\/p>\n
Gore cited that Wahid had declared Tangguh was Indonesia's
\npriority LNG project and he consistently championed the project
\nin his discussions with Asian heads of state.<\/p>\n
He also thanked the Minister of Mines and Energy and the
\nMinister of Foreign Affairs for actively marketing the project.<\/p>\n
The Indonesian government together with state oil and gas
\ncompany Pertamina are approaching several countries, including
\nChina, to buy Tangguh LNG.<\/p>\n
The project will be built near several gas fields in the
\nWiriagar, Berau and Muturi areas with a total certified proved
\nand probable reserve of 18.3 trillion cubic feet (tcf).<\/p>\n
Gore said the initial investment for the project could reach
\nsome US$2 billion, potentially leading to over $4 billion to $5
\nbillion in the longer term.<\/p>\n
Indonesia currently has two LNG production centers, which are
\nrespectively located in the Arun area in Aceh and the Bontang
\narea in East Kalimantan.<\/p>\n
Gore said BP Amoco together with ARCO have been operating in
\nIndonesia for 30 years as a production sharing contractor to
\nPertamina, and investors in the country's petrochemicals and coal
\nindustries.<\/p>\n
Together with its partners, the BP Amoco-ARCO combination has
\nspent over $7 billion in Indonesia.<\/p>\n
BP Amoco now produces 10 percent of Indonesian oil output,
\nsupplies 65 percent of Java's gas needs and generates $1.3
\nbillion per year in revenue.<\/p>\n
BP Amoco also has a 50 percent stake in the country's largest
\ncoal mining company PT Kaltim Prima Coal in Sangatta, East
\nKalimantan.<\/p>\n
During the meeting with the President, BP Amoco executives
\nexpressed the company's commitment to the highest ethical
\nstandards; partnership with Pertamina, the Indonesian government,
\ncontractors and non-governmental organizations; active engagement
\nwith the local communities; environmental protection and good
\ntreatment of employees.<\/p>\n
Wahid, who is on a five-day visit to the United States for a
\nmedical checkup, also met with members of the U.S. Chamber of
\nCommerce on Sunday in Baltimore and planned to meet rating
\nagencies and the top management of giant Internet firm American
\nOnline (AOL) on Monday evening in New York. (byg\/jsk)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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