PRESS RELEASE: AMDAL hearing marks step forward for Tangguh LNG project

In an important step forward for the Tangguh LNG Project, Pertamina/BP on Wednesday presented the Environmental Impact Assessment (AMDAL) for the Project to the CENTRAL AMDAL Evaluation Commission. At the Hearing attended by representatives of various government Ministries, legislators, representatives from the Province of Papua, Manokwari, Sorong and Fak Fak districts, and non government organizations, PERTAMINA/BP presented the major findings of the ANDAL and the project's environmental and social management and monitoring plans, which will address identified project impacts.

The presentation was an important step in the AMDAL documents evaluation process by the central AMDAL commission. Valuable input and feedback from the participants of the public hearing, will be incorporated to complete the Tangguh AMDAL documents. Yoga Suprapto, Tangguh Project Manager Director, Pertamina PKP, commented, "Today, many constructive comments, requests and observations were made by Commission members. Our aspiration is for Tangguh to be a model project in setting new environmental and social standards, and the results of the Hearing will help us achieve that objective".

The Tangguh LNG Project represents a comprehensive approach to sustainable resource development that integrates environmental, social and economic considerations into all aspects of the project design and management and the AMDAL plays a central role in project planning.

Tangguh is also the first project in Indonesia that thoroughly implements BAPEDAL (the Environmental Management Agency) regulation number 08/2000 on public consultation and transparency in the AMDAL process, This consultation involved 52 villages and local communities as well as other indigenous groups, local officials, media and academia. The project gathered more than 1600 specific comments from participating stakeholders.

The Tangguh LNG project is an important development for the Republic of Indonesia and will play a crucial role in maintaining Indonesia's global leadership position in the LNG industry. Furthermore, as Indonesia's Arun LNG resources approach maturity, Tangguh will significantly replenish the country's marketable LNG reserves.

The Tangguh LNG Project is operated by Pertamina and BP Indonesia and is located in Berau Bay, Papua province. The plant will be able to produce 7 million tonnes of LNG per annum from two initial processing trains. The Tangguh gas fields contain 18.3 trillion cubic feet (TCF) of independently certified proved and probable natural gas reserves, with an additional 5.4 TCF of possible reserves already identified. The magnitude of this investment will help renew confidence in the Indonesian economy and pave the way for additional foreign investment.

Tangguh is on schedule to be on stream at end of 2005/beginning in 2006. (*)

For further information please contact: Satya W Yudha, Vice President, Government and Public Affairs; BP Indonesia; Tel: 021 78548834