Financing agreement for Tangguh Train III to be signed Thursday

By Febry Silaban

Financing agreement for the Tangguh LNG expansion project, known as Trangguh Train III, in West Papua is expected to be made on Thursday, according to an official at upstream oil and gas authority SKK Migas.

?We have had several meetings with BP including international and domestic funders. On Thursday, July 21, it will only a (official signing) ceremonial because all the documents have been distributed among the funders,? said SKK Migas Public Relations Chief, Taslim.

He said that JBIC and ADB are among of the international funders, while domestic lenders include BRI, Mandiri, BNI, and Indonesian Infrastructure Financing (IIF).

Investment requirement for the Tangguh Train III is estimated at US$8 billion, of which $3.8 billion to come from international lenders.

BP Indonesia announced early this month that the final investment decision for the development of the Tangguh Train III project has been approved.

The Tangguh Expansion Project will add a third LNG process train (Train 3) and 3.8 million tons per annum (mtpa) of production capacity to the existing facility, bringing total plant capacity to 11.4 mtpa. The project also includes two offshore platforms, 13 new production wells, an expanded LNG loading facility, and supporting infrastructure.

Awards for the project?s key engineering, procurement and construction (EPC) contracts are expected in the third quarter of 2016 with construction to begin thereafter. Operation is expected in 2020.

BP Indonesia holds a 37.16 percent stake in the Tangguh LNG plant. Its partners include MI Berau BV (16.3%), CNOOC Ltd (13.9%), Nippon Oil Exploration (Berau), Ltd. (12.23%), KG Berau/KG Wiriagar (10%), LNG Japan Corporation (7.35% ), and Repsol-Talisman (3.06%).

Editing by Reiner Simanjuntak