JAYAPURA, Indonesia, Oct. 31 (UPI) -- BP is taking out loans to finance its Tangguh project in Papua, Indonesia.
The oil and gas company reportedly signed loan agreements totaling $884 million to help finance the Tangguh liquefied natural gas project in Papua.
The project is expected to become operational in late 2008. BP had previously signed agreements with several international banks in August 2006 for $2.6 billon in loans. The whole project is worth about $5 billion.
Tangguh is expected to produce an estimated 7.6 million tons of liquid natural gas per year, and BP has supply contracts with China, the Western United States and South Korea.
BP has recently been on a downslide, losing revenue in the last quarter, facing Clean Water Act violations in Alaska and facing more than $1 billion in fines for safety violations following deadly explosions at one of its Texas refineries.