BP plans seismic study in Irian

BP plans seismic study in Irian

SINGAPORE (Dow Jones): BP Amoco PLC. plans to conduct seismic surveys on its East and West Arguni blocks, in Irian Jaya, Indonesia, in July or August this year, a Jakarta-based spokesman for BP said late Thursday.

Gas from the Arguni and neighboring blocks will be developed to supply BP's planned Tangguh liquefied natural gas project.

Development of the project is "on schedule", with construction slated to begin in the first quarter 2002 and the LNG plant start-up planned for 2005-2006, he said.

Industry sources say the Chinese government's recent selection of BP to hold a 30 percent stake in a project to build a LNG terminal in Guangdong will favor its bid for the Tangguh project to supply LNG to Guangdong.

The BP spokesman said only that there has been "good progress" in the Chinese negotiations.

BP also holds a stake in Australia's Northwest Shelf LNG project, which is competing to supply to the Guangdong terminal.