RHP Salawati, BNP Paribas in $35m loan deal

Singapore-listed RH Petrogas Limited (RHP) said on Monday that its wholly-owned subsidiary firm RHP Salawati Holdings B.V. has entered into a loan agreement with French bank BNP Paribas.

Under the deal, BNP Paribas agrees to provide loan facilities of up to US$35 million to RHP Salawati, the company said in statement.

In September 2010, Swedish independent oil, gas firm Lundin Petroleum AB signed an agreement on the sale to RHP of its non-operated interests in the Salawati Basin and Island assets, located in West Papua.

The assets are sold for the consideration of US$ 37.1 million plus an additional $ 3.9 million in the event of certain future field developments. The transaction is subject to certain conditions, including RHP shareholders' approval, and is expected to complete before end 2010.

Lundin Petroleum holds a 25.936 percent interest in the Salawati Basin PSC (previously known as Kepala Burung block) and 14.5122 percent interest in the Salawati Island JOB PSC (previously known as Salawati Kepala Burung block). Both are operated by PetroChina. (denny)