BP-led consortium makes progress in Tangguh project<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Concern about the treatment of directly affected villages, local
\nprocurements and the employment of Papuans continue to surround
\nthe development of the massive Tangguh project in Papua.<\/p>\n
Despite these issues, the BP-led consortium has shown
\nimpressive progress in its project development, Senator George
\nMitchell, a member of the Tangguh Independent Advisory Panel
\n(TIAP) said recently.<\/p>\n
\"The visit confirms to us the enormous potential benefit to
\nthe people of Bintuni, Papua, and Indonesia in general if the
\nproject meets its full potential,\" said the former U.S. senator.<\/p>\n
The team -- comprising Mitchell, former Indonesian Ambassador
\nto Australia Sabam Siagian, Lord Hannay and the Rev. Herman Saud
\n-- has recently completed its annual visit to the project and
\nspoke to stakeholders in the province.<\/p>\n
The Tangguh project is located in Bintuni Bay area, while the
\ngas fields are located in the bay and the liquefied natural gas
\n(LNG) plant complex is being built on the south shores of the
\nformer Tanah Merah village.<\/p>\n
Villagers in the north shore feel that the early benefits of
\nthe project are being disproportionally given to the south shore.
\nBP has responded by developing clean water, school and health
\ncare projects, Mitchell said.<\/p>\n
Although BP has met the requirement that 30 percent of the
\ngoods procured should be made domestically, locals want more to
\nbe purchased from their areas.<\/p>\n
\"These will be continuing efforts that will go on through the
\nprocess of construction and the operation plan that BP and the
\ngovernment will have to manage and work at and continue to do,\"
\nMitchell said.<\/p>\n
The team will complete a comprehensive report, which will
\ninclude recommendations for BP and its partners, early next year.<\/p>\n
The project -- the country's third LNG plant -- is estimated
\nto cost up to US$5.5 billion, including the construction of the
\nLNG plant and other infrastructure. The construction of the
\ncomplex commenced this year and the plant is expected to start
\nproduction in 2008.<\/p>\n
The plant is estimated to produce more than 7 million tons of
\nLNG per annum in the first phase of production. The government
\nexpects the plant to offset the declining production at existing
\nplants in Bontang, East Kalimantan; and Arun, Aceh, which have
\nbeen operating for more than 20 years.<\/p>\n
The fields in Bintuni Bay that will feed Tangguh have
\ncertified reserves of 14.4 trillion cubic feet.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bp-led-consortium-makes-progress-in-tangguh-project-1447893297",
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"sponsor": "Okusi Associates",
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