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December 23, 2022
Mitsubishi Corporation
JX Nippon Oil & Gas Exploration Corporation
Sumitomo Corporation
Sojitzu Corporation

Governement of Indonesia Approved Extension of the Production Sharing Contract (PSC) for Tangguh LNG Project

We, the joint venture partner of Tangguh LNG Project led by bp, the project operator, are pleased to announce that the Government of Indonesia has approved a 20-year extension of Tangguh Production Sharing Contract (PSC). The Tangguh PSC consists of Berau, Muturi and Wiriagar PSCs.
Tangguh is the largest gas-producing project in Indonesia, accounting for around 20% of the country’s gas output. Tangguh LNG Project began operations in 2009 and has safely delivered more than 1,450 cargoes to global markets including Indonesia and Japan. It has two LNG production trains with a combined capacity of 7.6 million tonnes of LNG a year, with a third LNG train in Tangguh currently under construction. With Tangguh Train 3, we will increase Tangguh’s production by approximately 50%.
In addition to building Tangguh Train 3, we are planning the next phase of the development including Carbon Capture Utilization and Storage (CCUS) project, which is based on the Plan of Development approved by SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities Republic of Indonesia) in 2021. Once the CCUS project is implemented, which is subject to a final investment decision by Tangguh Partners, it will remove up to 90% of the reservoir-associated CO2 which represents nearly half of Tangguh LNG emissions, making Tangguh one of the lowest GHG intensity LNG plants in the world.
With extension of the PSC, we will contribute to stable supply LNG as well as reduce CO2 emission.
Notes to editors:
The Tangguh LNG Project is located in Papua Barat Province of Indonesia. It is operated by BP Berau Ltd on behalf of the other production sharing contract partners as contractor to SKK Migas. BP Berau Ltd and its affiliates in Indonesia hold a 40.22% interest in the project. Other Tangguh production sharing contract partners are MI Berau B.V. (16.30%), CNOOC Muturi Ltd. (13.90%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau Petroleum Ltd (8.56%), Indonesia Natural Gas Resources Muturi Inc. (7.35%) and KG Wiriagar Petroleum Ltd (1.44%).
Tangguh is currently the largest gas producing field in Indonesia with 1.4 billion cubic feet (Bcf) per day of gas production through two LNG trains and will reach 2.1 Bcf per day once Train 3, currently under construction, is online.
Tangguh Train 3 is a National Strategic Project as decreed by the Government of Indonesia.
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Based on the Three Corporate Principles, which serve as MC’s core philosophy, MC has continued to grow together with society by contributing to the sustainable development of society through its business activities while pursuing value creation. MC’s revised “Materiality” was announced in Midterm Corporate Strategy 2024 as a set of crucial societal issues that MC will prioritize through its business activities, towards the strategy’s goal of continuous creation of MC Shared Value (MCSV). Guided by this Materiality, MC will continue to strengthen its efforts towards sustainable corporate growth. Out of the six material issues relating to “Realizing a Carbon Neutral Society and Striving to Enrich Society Both Materially and Spiritually”, this project’s activities particularly support “Contributing to Decarbonized Societies” and “Promoting Stable, Sustainable Societies and Lifestyles”.

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