Article

BP is seeking a 20-year extension of its production sharing contract for the offshore Kangean block in East Java, which is set to expire in 2010. This extension aims to support the exploration and development of the Terang/Sirasun field, containing an estimated one trillion cubic feet of gas reserves, and would involve an investment of around $400 million. The contract extension is deemed essential to meet the increasing gas demand in East Java over the next 15 years, as current production from the Kangean block is projected to decline significantly.