BP’s Groundbreaking Milestone in Indonesia: The Tangguh CCUS Project

BP, the UK-headquartered energy titan, has made significant strides in its commitment to sustainable energy with the arrival of the first jacket at the installation site for the Tangguh Ubadari Carbon Capture, Utilization, and Storage (CCUS) project in Indonesia. This momentous event marks a pivotal moment not just for BP, but for Indonesia’s energy landscape as well.

The Journey of the First Jacket

More than two months after BP and its contractors confirmed readiness, the initial jacket for the UCC project set sail from Karimun Yard, following an impressive 357,000 work hours without any major incidents. This 1,000-ton offshore structure is one of four being constructed, indicating the scale and ambition of this project aimed at enhancing gas recovery in the region.

The jacket was loaded onto a transport barge in May 2026, embarking on a 5,800-kilometer journey to its installation site in Fakfak, located in the Papua Barat province. This engineering feat is more than just a logistical success; it is a testament to extensive preparation and collaboration that included early engagement with local communities, highlighting BP’s commitment to social responsibility and sustainable development.

Unlocking Gas Resources

One of the most significant aspects of the Tangguh UCC project is its potential to unlock approximately 3 trillion cubic feet (tcF) of gas. This additional gas supply is crucial for sustaining the already operational Tangguh LNG facility, which plays a vital role in Indonesia’s energy supply chain. The statement from BP emphasizes that this is not merely an engineering milestone, but a major leap towards addressing the country’s long-term energy needs.

With the arrival of the jacket, BP has officially entered the next phase of offshore installation, which will complement the existing infrastructure at the Tangguh LNG facility. This phase is essential for ensuring the project’s overall success and for positioning Indonesia as a key player in the Southeast Asian energy market.

Local Engagement and Economic Impact

In alignment with Indonesia’s economic strategies, the Tangguh UCC project boasts a 45% local content commitment (TKDN), emphasizing BP’s focus on utilizing local resources and expertise. Major equipment for offshore scopes, including the Ubadari jacket, has been fabricated at Saipem’s Karimun yard—known for its extensive experience with Tangguh LNG installations.

Moreover, all offshore line pipes are currently being coated in East Java, and modules for onshore scopes are under construction in Bintan and Batam by Indonesian fabricators. This multi-tiered approach not only helps in job creation but also strengthens Indonesia’s capabilities within the energy sector, ensuring that the economic benefits of the project resonate throughout the local community.

Carbon Capture and Environmental Commitment

The Tangguh UCC project represents Indonesia’s first CCUS initiative developed at scale, showcasing BP’s commitment to reducing carbon emissions. The project has the potential to sequester around 15 million tonnes of CO2 in its initial phase—an achievement that aligns with global efforts to combat climate change. By incorporating CCUS technology, BP aims to enhance gas recovery while minimizing the environmental footprint of its operations.

The project features a comprehensive plan that includes offshore platforms, CCUS facilities, and onshore compression systems. This integrated approach is designed to optimize existing Tangguh LNG infrastructure while contributing to the larger objectives of carbon neutrality and sustainable energy transition.

Future Outlook and Upcoming Milestones

Looking ahead, BP’s agenda includes laying a 75-kilometer pipeline from the newly installed platform back to the Tangguh site—an essential step that illustrates the interconnected nature of this ambitious project. Following a final investment decision (FID) announced in November 2024, Saipem began construction activities in the summer of 2025. The Ubadari gas field is projected to come online in 2028, setting the stage for a transformative period in Indonesia’s energy landscape.

As BP continues to push the boundaries of energy innovation through its Tangguh UCC project, it not only enhances its operational capabilities but also strengthens Indonesia’s position as a pivotal energy hub in Asia. This venture encapsulates a holistic approach to energy management, balancing economic viability with environmental stewardship and community engagement.