BP acquires Cairns stake in Tangguh field in Indonesia

BP PLC said it has acquired Cairns Ltd., a subsidiary of Genting Berhad of Malaysia, for $107 million and a deferred share of about 3% of net profit from Tangguh field in Indonesia. Tangguh, with 14.4 tcf of proved reserves, covers three production-sharing agreements. BP already held interests in two of them.


By the OGJ Online Staff

HOUSTON, July 6 -- BP PLC said it has acquired Cairns Ltd., a subsidiary of Genting Berhad of Malaysia, for $107 million and a deferred share of about 3% of net profit from Tangguh field in Indonesia.

Tangguh, with 14.4 tcf of proved reserves, covers three production-sharing contracts. BP already held interests in two of them.

Bill Schrader, BP associate president, Indonesia, said, "This is a very good strategic acquisition which will increase BP's share of Tangguh to about 50% and reflects our confidence in the development."

The three PSCs are Wiriagar, Berau, and Muturi. BP operates Wiriagar with 80%; KG Wiriagar Petroleum Ltd. owns 20%. BP operates Berau with 48%; Occidental Berau of Indonesia Inc. owns 22.856%; Nippon Oil Exploration (Berau) Ltd., 17.144%; and KG Berau Petroleum, 12%. BG PLC owns 50% of Muturi; Cairns Ltd., 45%; and Nissho Iwai Corp., 5%.

Before the transaction, BP owned 40% of the project, Oxy owned 16%, Nippon 12%, BG 11%, KG 10%, Cairns 10%, and Nissho Iwai 1%.

Cairns also owns a 9.7% stake in the Tangguh liquefied natural gas project.

Genting Berhad is an investment holding and management company.

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