TANGGUH LNG

TANGGUH LNG

Project Update

Jim EggerVP LNG Marketing

BP Indonesia

TANGGUH LNG Tangguh LNG Project Update

1. Introduction 2. Upstream3. LNG Plant & Shipping4. Field Activities5. Forward Plan

TANGGUH LNG Location Map

Tangguh will be Indonesia’s 3rd LNG supply center, joining the Arun plant on Sumatra and the Bontang plant on Borneo.

TANGGUH LNG Location Map

Tangguh LNG Project

Tangguh LNG Project

PAPUA PROVINCE

TANGGUH LNG Tangguh Project Partners

BP (operator)Nippon OilMitsubishi / INPEXKanematsu GroupLNG JapanCNOOC

TANGGUH LNG Gas Fields & Reserves

Proven: 14.4 Tcf

Probable: 3.9 Tcf

Possible: 5.4 Tcf

Total: 24 Tcf

Large exploratory potential

Probable - 3.9 tcf

Possible - 5.4 tcf

Proven - 14.4 tcf

TANGGUH LNG Upstream Facilities

TANGGUH LNG Upstream Summary

BP is the sole upstream operator & gas supplier

Individual well deliverability: 50-150 MMCFD

60 meter water depth; calm seas

Two unmanned production platforms

40 km pipelines from platforms to LNG plant

Contract with Saipem as been released for construction of platforms and pipelines

TANGGUH LNG Liquefaction Plant Facilities

LNG Loading Dock

LNG Loading Dock

Control Room

Control Room

AirportAirport

CommunityCommunity

LNG TrainsLNG Trains

LNG Storage

LNG Storage

Cargo DockCargo Dock

Gas Production Facilities

Maintenance Area

Gas Production Facilities

Maintenance Area

Kellogg Brown & Root, JGC & Pertafenikki contract released March ‘05

Two trains, 3.8 mtpa capacity each, gas drive, air cooled, C3 precool / mixed refrigerant process

Tangguh LNG Plant DesignTwo 170,000 m3 tanks

Jetty to handle vessels s up to 165,000 m3

First LNG in 4th

quarter 2008

Integrated control room

BP operated facility

TANGGUH LNG LNG Shipping

To meet Tangguh’s LNG delivery obligations to Korea and North America:

BP and partners are working with BPMIGAS to complete the first open tender procurement process for LNG vessels in IndonesiaShip procurement team has finished evaluation of technical bidsCommercial proposals have been received and are under reviewExpectation to execute TCPs by mid-year for up to 7 LNG vessels

TANGGUH LNG LNG Plant Site

AccessEnvironmentalGround ConditionsMangrovesTopography

TANGGUH LNG Independent Project Oversight

Ambassador Sabam Siagian (Indonesia)Reverend Herman Saud (Indonesia – Papua)

Senator George Mitchell (USA) Lord Hannay of Chiswick (UK)

Tangguh Independent Advisory Panel

An independent blue ribbon committee that convenes semi-annually to review and provide advice on issues related to Tangguh’s impact on the local Papuan environment and socioeconomic systems.

TANGGUH LNG Babo Airstrip Upgrade May 2003May 2003

TANGGUH LNG Babo Base Camp 150-man camp and office facility completed & operational

TANGGUH LNG Village Resettlement

New HouseNew House

Old Old TanahTanah MerahMerah VillageVillage

New New TanahTanah MerahMerah VillageVillage

TANGGUH LNG LNG Plant Site – Pioneer Camp

160-man pioneer camp is fully operational

TANGGUH LNG Tangguh Project Schedule2003 2004 2005 2006 2007 2008 2009

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4232221 2019 1817 1615 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 1415 1617 18 19 20 2122 23 24 25262728 2930 31 32 33 34 35 36 373839 4041 4243 44 45 46 4748 495051 5253 54 5556 57 5859 60

Tanah Merah Baru Village

Phase I Phase II

DefineLong lead procurement, operations planning, and mobilisation

Drilling 15 initial wells

Platforms & ORF

Pipelines & Subsea cables

Early WorksSite Mob

First gasavailable

Contract Award 1st DropTrain 1

1st DropTrain 2

Take overTrain 2

ACCESS & DEVELOPMENT

DRILLING

GAS PRODUCTION FACILITIES

LNG PLANT

Take overTrain 1

TANGGUH LNG Tangguh Launch Markets

3.6 mtpa3.6 mtpa

TangguhTangguh

MexicoMexico

ChinaChina

KoreaKorea

2.6 mtpa2.6 mtpa

1.3 mtpa1.3 mtpa

TANGGUH LNG Fujian LNG Terminal Site

March 2004

September 2004

TANGGUH LNG Fujian Market

Fuzhou

Putian

Quanzhou

Zhangzhou

Xiamen

Putian Power5 x 360 MW

Jinjiang Power3 x 360 MW

Xiamen Power2 x 360 MW

RegasTerminal

TANGGUH LNG POSCO LNG Terminal

November 2004

TANGGUH LNG K-Power

Will utilize POSCO’s new LNG import terminalWill be Korea’s first merchant IPPUnit 1 start-up early 2006 followed by Unit 2 mid-2006Total generation capacity approximately 900 mwBP took a 35% equity position in the projectBP to supply bridging LNG from start-up

TANGGUH LNG Costa Azul LNG Terminal

Sempra is building and will operate the first LNG import terminal on the North American West Coast.Costa Azul facility is expected to start operations in 2008 with a capacity of approximately 7.5 mtpa.

TANGGUH LNG Sempra Market

ECA Terminal

TANGGUH LNG Tangguh Launch Markets

3.7 mtpa3.7 mtpa

TangguhTangguh

MexicoMexico

ChinaChina

KoreaKorea

2.6 mtpa2.6 mtpa

1.3 mtpa1.3 mtpa

TANGGUH LNG Advantages for AsPac LNG Buyers

Demonstrated track record of competitiveness

Unique and imaginative solutions to address: Supply security

Transportation arrangements

Flexibility

Location in Southeast Asia

BP provides strong assurance with its role:Upstream operator and gas supplier

LNG plant operator

Ship charterer

TANGGUH LNG

TANGGUH LNG