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BP to slash US$2-4b off Tangguh LNG budget

Cut from an earlier US$12b bill seems to be on course as a sectorial downturn sparked by the oil price collapse has freed up capacity and lowered costs

Published Thu, May 26, 2016 · 09:50 PM

Singapore

BP'S plan to cut US$2-4 billion from the US$12 billion budget set aside for the Tangguh liquefied natural gas project in Indonesia is backed by indicative cost reductions from the project tenders in the pipeline.

BP Indonesia country head Dharmawan Samsu told reporters in Jakarta: "The market is adjusting to oil prices and we have to make a lot of effort to maximise the scope so we can keep costs down."

Mr Dharmawan was cited in reports indicating that the supermajor was looking to slash US$2-4 bil…