BPMIGAS, BP still differ on gas reserves for Tangguh train 3 project

The upstream oil and gas regulator BPMIGAS and BP Indonesia still have different perception on the amount of gas reserves that will become basis for the construction of train 3 of the Tangguh LNG plant.

Both parties are now discussing to find a common perception on the gas reserves before moving ahead to construct the train 3.

?In BPMIGAS view, gas reserves at the Tangguh field reach 11-14 trillion cubic feet (TCF) from previous estimate of 11-12 TCF. This means there is additional 2-3 TCF, which should enough for constructing the train 3,? BPMIGAS spokesperson, Gde Pradnyana, told Petromindo.com

He said BPMIGAS has asked Research and Development Centre for Oil and Gas Technology at the energy ministry to certify the additional gas reserves.

Gde said BP Indonesia has yet to finalize its estimation on the additional gas reserves. The gas reserves for the three trains at the Tangguh LNG plant could be within 11 to 15 TCF.

Furthermore, BPMIGAS sees gas potentials from Kasuri field owned by Genting Oil, Malaysia at around 2 TCF. ?This (gas potentials) could be supplied to train 3 of the Tangguh LNG plant,? Gde said.

Both parties are now discussing whether to go ahead with the construction of the train 3 given the existing gas reserves or lower the capacity of the train 3 compared to the capacity of the existing train 1 and train 2.

Gde said BP Indonesia still considers Tangguh LNG plant in Papua as its key business in Indonesia. He said BP is still interested to increase its investment in upstream gas projects in Indonesia.

Currently, the two trains of the Tangguh LNG plant produces at an average 7.6 million tonnes per annum (MTPA) of gas. The government expects the train 3 to commence operation in 2016, assuming BPMIGAS and BP Indonesia settle their difference on the gas reserves. (godang)