BP, CNOOC complete Papua upstream talks

Anglo-American energy firm BP Plc. said on Wednesday it had completed talk with China's CNOOC over the latter?s upstream participation in Papua?s production sharing contract blocks operated by BP.

?BP had agreed to give up a percentage of its equity participation in Papua PSC?s to CNOOC. But I can not yet tell the exact percentage until Fujian LNG deal is signed Thursday,? said Satya W. Yudha, BP Indonesia vice president for government and public relations on a sideline of Indonesia-China Energy Forum in Bali.

An industry source contacted by Petromindo.Com said BP had given CNOOC 12 percent interest in Wiriagar, Berau and Muturi PSCs that make up Tangguh project. BP currently holds approximately 50 percent interest in those three PSCs.

CNOOC upstream participation in Papua is a package offered by BP to sweeten Tangguh LNG offer to CNOOC.

Pertamina, on behalf of Indonesian government is scheduled to sign LNG supply and purchase agreement (SPA) with CNOOC this Thursday. The LNG will be sourced from BP-operated Tangguh LNG plant in Papua. The deal will call for 2.5 million metric tons per annum (MTPA) of LNG from Tangguh to the province of Fujian starting 2007 for 25 years. (alex)