Local banks to provide loans for Donggi Senoro, Tangguh LNG projects
Friday, April 19 2013 - 01:41 AM WIB
Three state-controlled banks plan to provide financing for the development of the multi-billion dollars Donggi Senoro LNG project in Central Sulawesi, and Tangguh LNG Train#3 project in Papua.
Rudi Rubiandini, Chairman of upstream authority SKK Migas said Thursday the three banks included Bank Mandiri, Bank Negara Indonesia (BNI), and Bank Rakyat Indonesia (BRI).
He said that his office has been in talks with the three banks, which would play role in the $4 billion Donggi Senoro LNG project either in providing financing for the development of the gas field, construction of the LNG plant, or acting as trustee paying agent in the sales of the LNG. He added there?s possibility for the three banks to be engaged in all of the three different areas.
?We have discussed the Donggi Senoro project (with the three banks), but regarding the Tangguh Train#3, we?re just about to meet (talk with the banks),? Rudi said, adding that the three banks would form a consortium.
He said that the planned financing for the Donggi Senoro project will have to be further discussed under a business to business talk between the banks and the project owner.
Meanwhile, Felia Salim, Vice President of BNI, confirmed that there has been interest among the three banks to be engaged in the financing of the Tangguh LNG Train#3 facility in Papua.
She said that the banks were still in the process of calculating the amount of financing to be provided for the project, as well as determining the risk.
Country head of BP Indonesia Dharmawan Samsu said that the development of the Tangguh LNG project is opened to financing from national local banks.
He told Petromindo.com that BP has been in intensive talks with SKK Migas over the development of the Tangguh LNG Train#3 project, with the company remains committed to meeting first production target of 2019.
Editing by Reiner Simanjuntak