“BP wants the contracts extended because their gas block contracts will expire before their LNG contracts to supply buyers finish," Purnomo said.

"The government and BP are still negotiating the conditions. If we extend the contracts we have to agree terms and conditions which are better for the Indonesian government.”

The specific blocks were not identified. It is understood the UK energy giant will make a final decision on its financing of the project.

Purnomo said he had also encouraged BP to invest in other gas reserves in the Papua/Irian Jaya area.

“Tangguh has reserves of 14.4 trillion cubic feet but there are other reserves there that could reach 28 trillion cubic feet. However, the reserves need to be verified,” Purnomo said, according to a Reuters report.

“I have asked BP to look into gas reserve development that could meet growing LNG demand in the future.”