Hong Kong-based BP spokesman Steve Lawrence told energyreview.net that he could not understand the origin of the reports. "Since last year we have talked consistently about a 2007 start up, in line with market need," Mr Lawrence said.

"The Tangguh project remains firmly on track with the completion of several key milestones, including the securing of a contract to supply China's Fujian LNG terminal.

"I can only assume that the notion of a delay has been conjured up from old references to Tangguh being developed to meet a 2005 Guandong start-up.

"To my knowledge, nobody is talking about 2005 start-up for Guandong, so to say that Tangguh is being delayed when we have long maintained a 2007, is both misleading and erroneous."

Meanwhile, reports have emerged BP is close to paying as much as $US4.5 billion for one third or more of Siberian producer OAO Sidanko. The company would produce at least 1.1 million barrels of oil a day, compared to BP's daily output of 1.9 million barrels. It would hold an estimated 10.6 billion barrels of oil reserves, compared to BP's 8.2 billion barrels.

The deal, if successfully carried out, would mean the largest ever foreign equity investment in Russia.