BP to up stake in RI gas field

BP to up stake in RI gas field

LONDON (AFX): BP PLC said it has bought Cairns Ltd for a lump sum of US$107 million and a deferred share of future profits from its Tangguh field, increasing its stake in the Indonesian oil field to 50 percent.

Cairns, a subsidiary of Genting Berhad of Malaysia, holds a 9.7 percent stake in the Tangguh LNG project.

Bill Schrader, BP associate president, Indonesia said: "This is a very good strategic acquisition which will increase BP's share of Tangguh to about 50 percent and reflects our confidence in the development."

He said Tangguh will be a long-term competitive supply source which will help meet rising demand in the region.

"The marketing of Tangguh is going very well and there is great interest in the markets of the Far East, particularly China, Japan and Korea," he said.

Tangguh has proved reserves certified at 14.4 trillion cubic feet.