Tangguh LNG:Commercial Success in a Challenging Environment

Jim Egger, BP IndonesiaWorld Gas Conference, June 2006

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Project Location

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Project Commercial Structure

• Consistent accountability along the LNG supply chain

• BP as Project Operator

− Upstream

− LNG Plant

• BP and Tangguh Partners

− Ship Charterers

− LNG Sellers

• BPMIGAS as Indonesia’s upstream regulatory agency approves and oversees all activities

Joint Venture Partners

KG LNG Japan

CNOOC

Nippon Oil

Mitsubishi

Inpex

BP(operator)

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Main Construction CampMain Construction Camp

Trains 1 & 2

Future Trains

LNG Tanks

LNG Jetty

Combo Dock

Admin. Buildings & Dormitory

Shore Base

Tangguh LNG Plant Scale Model

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Project Update

• Project is 40% complete, running ahead of schedule

• Project costs on track

• Approximately 4600 persons on site

• 6.5 million man-hours worked without a DAFWC

• Integrated Social Program focusing on health, educational support, governance, economic and infrastructure development.

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Tangguh Project Site

LNG Tank 1

Construction Jetty

LNG Tank 2

Utility Area

Trains 1 & 2

LNG Jetty site

Main Control Building

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Train 1 Main Pipe Rack

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

LNG Tank 1 Foundation Work

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Saennga Village Renovation Project

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Project Milestones

October 20081st Drop LNG, Train 1

January 2009

June 2009

Train 1 Commercial Operations

Train 2 Commercial Operations

October 20081st LNG Vessel received

March 2005Project FID & EPC Notice to Proceed

April 2007Production Platforms 1&2 installed

March 20081st Platform Gas available

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

LNG Trades

Sempra 3.7 mtpa

Fujian 2.6 mtpa

POSCO & K-Power 1.15 mtpa

Diversion Options

Tangguh LNG

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

LNG Capacity & Commitments

0

2

4

6

8

10

12

2008 2009 2010 2011 2012 2013 2014

Trains 1 & 2

7.6 mtpa

Expansion Opportunities

Annual Commitments

mtp

a

Tangguh LNG: Commercial Success World Gas Conference, Amsterdam, June 2006

Strategic Value for Indonesia

• 3rd LNG center will maintain Indonesia’s position as a leading LNG exporter

• Potential synergies with Indonesia’s existing LNG plants

• Economic development of Papua Province in eastern Indonesia

• One of the largest foreign direct investments ever undertaken in Indonesia

• Significant job creation and domestic industry development

• Train 3+ provides significant long-term growth potential

Tangguh LNG:Commercial Success in a Challenging EnvironmentJim Egger, BP IndonesiaWorld Gas Conference, June 2006