RI likely to extend BP contracts

RI likely to extend BP contracts

JAKARTA: The Indonesian government will likely agree to extend contracts awarded to BP Plc (BP) to operate three gas blocks in West Papua until 2035, a government official said on Thursday.

Iin Arifin Takhyan, director general of oil and gas at the Ministry of Mines and Energy, said the two sides were expected to sign an agreement in the near future.

BP has been asking the government to extend the contracts for the Wiriagar block, which will expire in 2023, the Muturi block, which will expire in 2027, and the Berau block, which will expire in 2017.

The three blocks will supply gas to the nearby Tangguh natural gas liquefaction facility that BP will develop with other partners.

The extension is to secure the gas supply for Tangguh. BP has signed contracts to sell LNG from Tangguh to offshore buyers until 2035. -- Dow Jones