BP Amoco says Tangguh project to benefit locals

Oil and gas company BP Amoco promised that its planned Tangguh liquefied natural gas (LNG) project in Irian Jaya would bring benefits to the locals.

"We are sure the citizens and communities of Irian Jaya will benefit from the project along with Indonesians.

"The revenue eventually flowing into Irian Jaya from the project will be significant and the challenge will be to improve the living standards, health and education of the people," company vice president John S. Gore said during a meeting with President Abdurrahman Wahid in Baltimore, Maryland, U.S.

Gore made the statement amid growing demands from the residents for larger shares in the revenues from the development of their natural resources.

Many oil and gas companies operating in the country have often been criticized for their small contributions to the people living around their operating sites.

BP Amoco has become the majority shareholders in the Tangguh LNG project after recently acquiring Atlantic Richfield Company (ARCO), which was the lead consortium of the project.

Gore also expressed gratitude for President Abdurrahman's personal interest and active involvement in finding long-term export markets for the Tangguh gas. (*)