BP probing Tangguh Train 4 possibility

By Ruli Setiawan

After the plan of development (PoD) of Tangguh Train 3 signed at the end of last year and is expected to operate in 2018, BP Indonesia is now probing the possibility of developing Tangguh Train 4.

The energy and mineral resources ministry?s Oil and Gas Director General A. Edy Hermantoro said on Friday that BP Indonesia is now conducting a 3D seismic survey to find out the oil and gas potential in the area.

?This is initiated by BP which sees a potential for new explorations. If it is successful, then the Train 4 will be realized,? he said.

Edy pointed out that the process for the development of the Train 4 would take a long time. ?We need the support of all sides and hopefully, the political stability can be maintained. The stability is important, otherwise there will be no investors interested,? he said.

On the gas allocation for the Tangguh Train 4 once it is developed, Edy said that it would depend on the economics of the gas potential in the area.

He said that drilling cost would need about US$50 million per well. If the gas price is acceptable at the domestic market, then all of the gas production will be allocated for domestic market.

Meanwhile, Gas supply from Tangguh Train 3 for domestic market has been agreed at minimal 40 percent.

BP Indonesia has interest in the Tangguh LNG project at 37,16 percent, with partners MI Berau BV at 16,3 percent, CNOOC Ltd at 13,9 percent, Nippon Oil Exploration (Berau), Ltd at 12,23 percent, KG Berau/KG Wiriagar at 10 percent, LNG Japan Corporation at 7,35 percent and Talisman at 3,06 percent.

Editing by Benget Besalicto Tnb.