Tangguh LNG to sign USD 1.2 billion financing deal: BPMIGAS

Indonesian upstream oil and gas watchdog BPMIGAS said Tangguh LNG partnership would signed US$1.2 billion loan with a consortium of Chinese banks in China later this month as part of the financing scheme to BP-led 8 MTPA LNG plant.

BPMIGAS Chairman Kardaya Warnika said Wednesday that the fund?s disbursement is expected to commence October/November this year.

Kardaya said Tangguh LNG project would need $3.5billion loan financing with the balance is expected from Japan?s consortium of banks. ?Hopefully, we can sign loan agreement next year,? he said.

Tangguh LNG project is slated to commence production early 2008 with most of production had been contracted to Fujian in China, South Korea and Northern America.

A joint operation between PT Brown & Root Indonesia, a subsidiary of KBR, JGC Corporation (JGC) of Japan and PT Pertafenikki Engineering (PFN) of Indonesia has been awarded the engineering, procurement, construction and commissioning (EPCC) contract for the Tangguh LNG plant at a value of $1.8 billion.

BP's partners in the Tangguh Project are MI Berau B.V (held by Mitsubishi Corporation and INPEX Corporation); CNOOC Ltd.; Nippon Oil Exploration Berau; KG Companies (held by Japan National Oil Corporation, Kanematsu Corporation and Overseas Petroleum Corporation); and LNG Japan Corporation (held by Sojitz Corporation and Sumitomo Corporation). (alex)