BP Amoco thanks president Wahid for Indonesian Gov't's support for Tangguh LNG Project

Led by Mr. John C. Gore, a BP Amoco Group Vice President, four senior international Executives of the company held a meeting with President Wahid in Baltimore, Maryland, US on Sunday June 11th, 2000.

The purpose of the discussion was to express BP Amoco's sincere appreciation for the President's personal interest and active involvement in finding long-term export markets for Tangguh gas, which will significantly boost Indonesia's foreign exchange earnings. We thanked him for consistently championing the project in his discussions with other Asian Heads of State, and his declarations that Tangguh is Indonesia's priority LNG project. "We also acknowledged the similar support given by the Foreign and Energy Ministers.

The Importance of Tangguh LNG

There is no doubt that with its massive reserve base of 18.3 TCF (certified proved and probable), the massive Tangguh discoveries will sustain Indonesia's position as the leading supplier of LNG in the Asian market.

Mr. Gore commented that "The Tangguh project is particularly exciting at this time, because if the Government, Pertamina and BP Amoco all work together, Tangguh can definitely become a "model project" being delivered quicker, better and cheaper than ever before. We should all aim to make the project a symbol of the best in the new Indonesia as the world-class achievement of an invigorated self-confident nation".

The initial investment for the Tangguh project could reach some US $ 2 billion, potentially leading to over $ 4-5 billion in the longer-term.

Mr. Gore emphasized that the project is located in Papua. "Like the President, we wish the citizens and communities of Papua to benefit from the project along with all the Indonesian people. The revenues eventually flowing to Papua from the project will be significant, and the challenge will be to improve the living standards, health, education of the people and create long-term high quality employment. Working together, we can make Tangguh a project to help build peace and prosperity.

The BP Amoco executives also informed the President that the extensive environmental consultation process for the project has just commerce and assured him that both Pertamina and BP Amoco will continue to act an open, democratic and participatory spirit.

BP Amoco Commitments to the New Indonesia

As one of Indonesia's leading foreign investors following the BP Amoco-ARCO combination, we also assured the President of our belief that the oil, gas and petrochemicals sector can play a constructive role in promotion the priorities of long-term transparency, the highest ethical standards, economic recovery and benefits to local communities.

BP Amoco is a company which recognizes its wider social and economic responsibilities in Indonesia, and the visiting Executives informed the President of the company's commitment to:

? the highest ethical standards

? partnerships with all out many stakeholders in Pertamina, the Government, contractors and NGOs

? active engagement with the local communities who live and work around our projects. Our objective is to be a force for good

? protect Indonesia's unique natural environment

? treat our employees with respect and dignity at all times

Mr. Gore concluded, "if the Indonesian reform process is sustained, and a climate of international competitiveness fostered, we have great confidence for the future".

BP Amoco and ARCO in Indonesia

Together BP Amoco and ARCO have operated in Indonesia for 30 years as Production Sharing Contractors (PSC) to Pertamina, and investors in the country's petrochemicals, and coal industries. Together with our partners, we have spent over US$ 7 billion in Indonesia. With Pertamina and our partners, the combined company now produces 10% of the country's oil, supplies 65% of Java's current gas requirements and generates US$ 1.3 billion per year of revenue for the benefit of the Indonesia people. We have also discovered world class gas fields in Papua which has a reserve base of 18.3 TCF (certified proved and probable). These have the potential to create even more wealth for Indonesia in the year ahead. (*)