Mitsubishi buys Occidental's stake in Tangguh field off Indonesia

Tangguh project partner BP PLC Wednesday welcomed the decision by Japan's Mitsubishi Corp. to buy Occidental Berau of Indonesia Inc.'s 16% stake in the gas field off Indonesia as improving the prospects of marketing the development's future production into Asia Pacific.


By the OGJ Online Staff

LONDON, July 11 -- Tangguh project partner BP PLC Wednesday welcomed the decision by Japan's Mitsubishi Corp. to buy Occidental Berau of Indonesia Inc.'s 16% stake in the gas field off Indonesia as improving the prospects of marketing the development's production.

The stake will cost Mitsubishi $480 million.

"We are pleased to have Mitsubishi join us on Tangguh," said Bill Schrader, BP associate president, Indonesia. "As a partnership, we are working towards the earliest possible development, and Mitsubishi's presence can only further enhance confidence in Tangguh's gas marketing success in Japan, as well as in China and Korea where we have registered much interest in this gas field."

The move is a further restructuring of the partnership at Tangguh, made up of three production- sharing contacts, after BP announced July 6 it had acquired Cairns Ltd.'s 10% stake in the project.

Tangguh's PSCs -- Wiriagar, Berau, and Muturi -- have proved reserves of 14.4 tcf.

After transaction completions, BP will own 50% of the project, Mitsubishi 16%, Nippon Oil Exploration Berau Ltd. 12%, BG Group, 11%, KG 10%, and Nissho Iwai Corp. 1%.

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