Japanese firms to invest $1.4b on Tangguh

Eight Japanese energy firms will invest a total of 150 billion yen (US$1.4 billion) to develop Indonesia's Tangguh field through 2035, a news report said on Monday.

The firms will separately develop three sections of the gasfield in remote Papua province for liquefied natural gas (LNG) with British energy giant BP, the Asahi Shimbun said.

The deal will be announced later this week during a visit to Japan by President Susilo Bambang Yudhoyono, who is expected to focus on moving forward negotiations to reach a free trade agreement between the two nations.

The Tangguh field, expected to begin operations in 2008, has natural gas reserves estimated at 14.4 trillion cubic feet.

BP Indonesia has a 37.16 percent stake in the Tangguh project.

LNG exports from the Tangguh field are expected to reach 7.5 million tons annually to China, South Korea and west coast USA starting 2008.(*)