Jakarta (ANTARA News) - BP Indonesia, the Indonesian arm of the UK's BP Plc, has signed an 884 million US dollar syndicated loan with six international financial institutions for additional funds to finance the Tangguh liquefied natural gas (LNG) project, the head of Indonesia's upstream oil and gas regulator (BP Migas) Kardaya Warnika said Wednesday.
The loan agreement was signed a few days ago with Intesa, Bank of Tokyo-Mitsubishi, DnB, Bank of China, Royal Bank of Scotland and Mitzuho, Warnika was quoted as saying by Thomspon Financial.
The syndicated loan will have a tenor of 15 years and an interest rate of LIBOR plus 0.335 percent.
BP and its partners have already signed a 2.6 billion US dollar agreement with the Japan Bank for International Cooperation, the Asian Development Bank and several international commercial banks to finance the Tangguh project.
The group is expecting to produce natural gas from the Bintuni Bay area in the easternmost province of Irian Jaya Barat, or Papua. The area has proven reserves of 14.4 trillion cubic feet and the project is expected to last for 30 years.
The project is expected to start commercial operation by early 2009.
BP has a 37.16 percent stake in the LNG project through wholly owned units BP Breau Ltd, BP Muturi Holds BV and BP Wiriagar Ltd, while China's CNOOC Ltd owns 16.96 percent.
Other owners include Nippon Oil Exploration with a 12.2 percent stake and LNG Japan Corp, a joint venture between Sumitomo Corp and Sojitz Holdings Corp, which owns 7.35 percent.
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