BP hints delay in Tangguh expansion project
Thursday, July 3 2014 - 02:39 AM WIB
Oil and gas giant BP plc hinted that the final investment decision for Tangguh LNG expansion plan in West Papua might be delayed due to lingering problems, which would likely postpone the start-up of the US$12 billion project.
?We are working closely with relevant government institutions on some issues related to the Tangguh Train 3 project. These have not reached resolution within the time frame expected and we are seeing increasing impacts to the project schedule. However, we remain hopeful that we will be able to reach resolution to prevent further delay," Dharmawan Samsu, BP Indonesia Head of Country said on Tuesday through emailed statement.
He did not give further details.
BP initially hoped to be able to make the final investment decision for the expansion project early next year.
The expansion project involves adding a third production train to the plant, boosting Tangguh LNG's capacity by 3.8 million tons per year. Tangguh's capacity currently stands at 7.6 million tons per year. The expansion project, if stays on schedule, would be completed in 2019.
BP operates Tangguh LNG with a 37.16 percent stake in the gas field project.
Editing by Alexander Ginting