MOSCOW (MRC) -- BP has cut its investment budget for the Tangguh Train 3 liquefied natural gas (LNG) project in Indonesia to between USD8 B and USD10 B, from USD12 B previously, a company official said on Wednesday, amid depressed oil prices, reported Hydrocarbonprocessing.
"The market is adjusting to oil prices and we have to make a lot of effort to maximize the scope so we can keep costs down," BP Indonesia country head Dharmawan Samsu told reporters.
BP is currently holding a tender for engineering, procurement and construction for the third LNG train at its Tangguh project in West Papua and expects a final investment decision on the project mid-year, Samsu added.
As MRC informed before, earlier this year, BP PLC sold its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. (IVL.TH), for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business. The divestment was in line with BP’s global petrochemicals strategy of pursuing a competitively advantaged portfolio through world-scale, low-cost facilities that utilize BP proprietary technology, including the production of purified terephthalic acid, or PTA, a key raw material in the production of polyester.
BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 17,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities.
MRC