Indonesia
Berau Block, Tangguh LNG Project
Nippon Oil Exploration (Berau) Ltd was the first of the current partners to be involved in this project and has been on board since the exploration stage. Production commenced on this project in June 2009. This is the second LNG project we have participated in, following the MLNG Tiga project in Malaysia, which has contributed to our stable long-term LNG production and revenue. Since October 2007 we have also been a shareholder of KG Berau, with a 14.2% interest in the company.
Promoted with Pride
Tangguh, the name of the project, means "strong" or "tough" in the Indonesian language. LNG production commenced in the midst of the decline in LNG production in Indonesia, while the government and people of Indonesia had high hopes that the new project would contribute to the country's economic development and future stability.
LNG Sales to Asia and Many Other Regions
The LNG produced at the Tangguh project is shipped to three destinations: Sempra's LNG terminal in Baja California, Mexico; the LNG terminal being built by CNOOC in Fujian, China; and the Gwangyang LNG terminal in Korea for further delivery to POSCO and SK E&S. Tangguh LNG is also sold to various other regions, particularly East and Southeast Asia. The sale of LNG to Sempra marked the first time that LNG produced in Asia was supplied to a terminal on the west coast of North America under a long-term contract.
Tangguh Expansion Project
The final investment decision on the Tangguh Expansion Project was made in July 2016. The Tangguh Expansion Project will add a third LNG process train (Tangguh Train 3) with 3.8 million tons per annum (mtpa) of production capacity to the two trains under operation with 7.6 mtpa of production capacity. In September 2023, the Tangguh Expansion Project started commercial operation and first shipment of LNG by Train 3. This project is also planning the next phase of development including a CCUS project.
The Tangguh Expansion Project will play an important role in meeting the growing energy demand in Indonesia by supplying a 75% of the LNG to be produced at the Tangguh Train 3 to the state electricity company PT. PLN (Persero). The project will also contribute to Japan's energy security by supplying the remaining 25% of the LNG to Kansai Electric Power.
Project Summary
Berau Block
| Company Holding the Acreage | Nippon Oil Exploration (Berau) |
|---|---|
| Shareholders (Holding Percentages) | JX Nippon Oil & Gas Exploration Corporation (NOEX) (51.0%) JOGMEC(49.0%) |
| Interest | 17.1% |
| Partners (Interest) | BP*1(48.0%) MI Berau (22.9%) KG Berau*2(12.0%) |
- 1Operator
- 2Shareholders of KG Berau: JOGMEC (49.2%) NOEX (14.2%) and others
Berau Block, Wiriagar Block and Muturi Block, integrated areaExplorationDevelopmentProduction
| Interest | 12.2% (Nippon Oil Exploration (Berau) ) 1.2% (KG Berau) |
|---|---|
| Partners (Interest) | BP*1(40.2%) MI Berau(16.3%) CNOOC(13.9%) KG Berau*2/KG Wiriagar (10.0%) LNG Japan (7.3%) |
- 1Operator
- 2Shareholders of KG Berau: JOGMEC (49.2%) NOEX (14.2%) and others
Nippon Oil Exploration (Berau) (Berau Block, Wiriagar Block and Muturi Block, integrated area) Project History
| September 2023 | Started commercial operation of LNG produced by Train 3 |
|---|---|
| July 2016 | Final investment decision on Tangguh Expansion Project |
| June 2009 | Started LNG production at Tangguh project |
| December 2002 | Tangguh Joint Venture Agreement signed by Berau, Wiriagar and Muturi PSC contractors |
| February 1997 | Discovered Vorwata gas field in Berau Block |
| December 1995 | Drilled Wiriagar Deep-2 Well (Confirmed that the Wiriagar Deep Gas Field extended into Berau Block) |
| August 1994 | Discovered Wiriagar Deep Gas Field in Wiriagar Block adjacent to Berau Block |
| December 1989 | NOEX acquired working interest in Berau Block owned by Occidental |