BP Indonesia signs US$884 mln loan deal for Tangguh LNG project

BP and its partners have already signed a 2.6 billion US dollar agreement with the Japan Bank for International Cooperation, the Asian Development Bank and several international commercial banks to finance the Tangguh project.

The group is expecting to produce natural gas from the Bintuni Bay area in the easternmost province of Irian Jaya Barat, or Papua. The area has proven reserves of 14.4 trillion cubic feet and the project is expected to last for 30 years.

The project is expected to start commercial operation by early 2009.