Tangguh contractors want full implementation of TBS for Train-3 financing
Tuesday, March 17 2015 - 02:28 AM WIB
The Tangguh PSC contractors will not make the Final Investment Decision on the Train 3 of the Tangguh LNG plant in West Papua until after the government approves a full implementation of Trustee Borrowing Scheme (TBS) for the project?s financing, including for cost recovery on interest payments and loans, according to a top official of British firm BP Plc, the operator of the Tangguh plant.
?We are moving forward with issuing the marketing documents to financial institutions and looking forward to receiving the necessary support from SKK Migas (upstream authority) and the Government of the Republic of Indonesia to advance the TBS process,? BP Indonesia Head of Country Dharmawan Samsu told Petromindo.com.
Earlier, it was reported that the Corruption Eradication Commission (KPK) was questioning the proposed TBS for the financing of the project. The TBS financing for the project valued at US$ 12 billion has been approved by SKK Migas, but suddenly KPK stated the financing scheme could potentially violate Article 6C of Law No. 22/2001 on Oil and Gas.
Meanwhile, last month a source said the Ministry of Finance has approved of the BP?s proposal to use TBS for the Train 3 project. The firm has reported the approval to the Ministry of Energy and Mineral Resources.
Editing by Johannes Simbolon