BP seeks govt help on LNG project

BP seeks govt help on LNG project

The Jakarta Post, Jakarta

British energy giant BP Plc., which leads a consortium that will
develop and manage the Tangguh liquefied natural gas (LNG) plant
in Papua, has asked the government to provide help in speeding up
the construction of the project.

The request was conveyed by BP CEO Lord Browne to President
Susilo Bambang Yudhoyono during a meeting at the State Palace on
Thursday, a source said on Friday.

At the meeting, which was also attended by Minister of Energy
and Mineral Resources Purnomo Yusgiantoro, Browne reported to the
President the latest developments regarding the Tangguh project,
which will be the country's third LNG plant.

The source said that Browne also raised some "bureaucratic
problems" that needed to be resolved by the government before the
final go-ahead to start construction of the plant could be given.

The source did not elaborate on what these problems were.

This paper two months ago quoted Rachmat Sudibyo, head of the
country's oil and gas regulatory implementing body, as saying
construction of the plant would most likely begin in January, but
no confirmation has been given by BP or its partners in the
consortium.

The project is expected to cost about US$5 billion, of which
BP and its partners will cover $2 billion with the remaining $3
billion expected to come from lenders.

The source said that Browne came to Indonesia on Tuesday,
flying directly from London to Papua to inspect the project.

Browne also held an informal dinner in Jakarta, which was
attended by political analysts Salim Said and Wimar Witoelar, as
well as Indonesia's former ambassador to Australia Sabam Siagian.