BP close to seal loan deal for Tangguh

Upstream oil and gas authority BPMIGAS said on Wednesday that Anglo-American energy firm BP Plc is in the process of finalizing last tranche of loan for its Tangguh LNG project in Papua from six international lenders and expected the deal could be sealed next month in Jakarta.

BPMIGAS Deputy Chairman Eddie Purwanto told reporters that the US$884 million loan would carry interest of LIBOR plus 0.335 percent with 15 years tenure.

He did not give the name of the six banks, only said that the lenders were European, Japanese and Chinese banks.

The first phase of the loan amounted to $2.6 billion was signed in August last year.

Tangguh is expected to come onstream by the end of next year and will reach production of 7.6MTPA of LNG the following year. (godang)