British Petroleum (BP), a UK-based energy company, has committed to investing USD 7 billion (approximately IDR 110.95 trillion at IDR 15,850/USD) in Indonesia. The investment will fund the Tangguh Ubadari project, Carbon Capture Utilization & Storage (CCUS), and Compression (UCC). The decision follows a joint evaluation by BP and the Indonesian Government through SKK Migas. The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, expressed appreciation for BP’s investment, emphasizing its potential to boost national oil and gas production and generate significant regional economic benefits, including increased local revenue and positive multiplier effects.
This USD 7 billion investment underlines BP's confidence in Indonesia’s oil and gas industry, with the Tangguh UCC project serving as a key driver for enhanced energy production. The government, guided by President Prabowo’s vision to improve energy resilience, will prioritize increased oil and gas production. The final investment decision, confirmed during President Prabowo Subianto's meeting with major industry leaders at the CEO Roundtable Forum in London on November 21, 2024, reflects strong international investor optimism. The CCUS project, potentially Indonesia’s first CCS Hub, involves the development of the Ubadari gas field, enhanced gas recovery through carbon capture, and the expansion of Tangguh LNG infrastructure. The project aims to store up to 1.8 Gigatons of CO2, starting with the injection of 15 million tons of CO2 from Tangguh LNG operations, with production expected to begin by 2028.
