22nd Nov 2024 08:14
(Alliance News) - Mitsui & Co Ltd on Friday said a consortium in which it participates has reached a final investment decision regarding the Tangguh Ubadari joint venture gas project.
Located on the Ubadari gas field in Indonesia's Papua Barat Province, the gas recovery and carbon capture, utilisation and storage project is calculated to be a USD7 billion initiative.
The Tokyo-based industrial conglomerate said operations and production are expected to begin in stages from 2028 onwards with the project having a production capacity of 11.4 million tons.
The project is operated by a BP PLC-led consortium under a production-sharing contract with SKK Migas, Indonesia's upstream oil and gas regulator.
As part of KG Berau Petroleum Ltd, Mitsui shares an 8.56% stake in the project with Japan Organization for Metals & Energy Security, JX Nippon Oil & Gas Exploration Corp, Mitsubishi Corp, and Inpex Corp.
BP has a 40.22% stake. Mitsubishi and Inpex have a further 16.30% stake via MI Berau BV. China National Offshore Oil Corp has a 13.90% stake via CNOOC Maturi Ltd.
Mitsui says: "The project aims to unlock an additional three trillion cubic feet of natural gas in production volume to play a vital role in the stable energy supply to Asian countries including Japan in the energy transition era."
Mitsui shares closed 1.1% higher at JPY3,305.00 each in Tokyo on Friday. BP shares were up 1.0% at 392.62 pence early Friday in London.
By Elijah Dale, Alliance News reporter
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