Multinational oil and gas group British Petroleum (BP), alongside its partners, announced a US$7 billion investment to develop the Tangguh Ubadari CCUS Compression (Tangguh UCC) project in Papua Barat, Indonesia.

The initiative is poised to unlock approximately 3 trillion cubic feet of gas while also establishing Indonesia’s first large-scale carbon capture, utilization and storage (CCUS) structure. The ground-breaking project aims to sequester 15 million tonnes of carbon dioxide (CO2) during its initial phase, with the potential for greater carbon storage leveraging the region’s capacity.

The announcement followed a recent visit to London by Indonesian President Prabowo Subianto to reinforce confidence in Indonesia’s investment climate and sustainable energy opportunities.

Scheduled to commence production in 2028, the Tangguh UCC project, BP says, underscores its strategy to deliver sustainable energy solutions and fortify its aspiration to be a higher-value energy provider in Asia.

“This project,” adds Murray Auchincloss, BP’s CEO, “not only unlocks a fantastic gas resource but also sets a precedent for enhanced recovery through CCUS technology in Indonesia.”

The project is part of BP’s ongoing evolution to balance energy production with environmental stewardship. By incorporating CCUS, the Tangguh UCC initiative not only curtails operational emissions but also advances Indonesia’s national strategic priorities.

Sustainability is a cornerstone of the Tangguh development, the company says, with CCUS technology designed to compress and store CO2 emissions offshore, signalling a shift toward more eco-conscious energy infrastructure.

The approach aligns with growing global and regional commitments to achieving net-zero goals while meeting Asia’s expanding energy needs.

Indonesia recently made a bold commitment to achieve net-zero emissions by 2050, a full decade earlier than its original timeline. Subianto made this announcement at the recent G20 forum, where he outlined plans to phase out all coal and fossil fuel power plants within the next 15 years, a significant acceleration from the country’s prior 2056 target. 

With 99% of its operational workforce being Indonesian, BP’s ongoing efforts in the region also include initiatives to increase local employment. The company plans to raise Papuan workforce representation to 85% by 2029, a move that the company says will bolster economic and community development, alongside the environmental gains.