The Tangguh gas field in Indonesia's eastern province of Papua is expected to resume production and delivery by the end of 2008, following the Tuesday's signing of a 2.5 billion U.S. dollars loan, a senior official said.

Tangguh has proven reserves of 14.4 trillion cubic feet of gas and estimated total reserves of 23.7 trillion cubic feet which have not been proven yet.

The loan comprises 1.2 billion dollars from the Japan Bank for International Cooperation (JBIC), 350 million dollars from the Asian Development Bank (ADB) and 1.07 billion dollars from a consortium of seven international banks, including the Bank of Tokyo-Mitsubishi UFJ Ltd, Singapore-based BNP Paribas, Hong Kong- based ING Bank NV Kong, Mizuho Corporate Bank Ltd, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank.

Present in the signing ceremony were Energy and Mineral resources Minister Purnomo Yusgiantoro, Oil and Gas Executive Body (BP Migas) head Kardaya Warnika and provincial officials from West Papua.

"We are getting more confidence about the Tangguh project after the signing," said Minister Purnomo.

The Tangguh project is estimated to cost 5.5 billion dollars.

The Tangguh field has secured gas supply orders amounting to 6. 9 million tons a year, consisting of 2.6 million tons a year from China's CNOOC, 0.6 million tons from South Korea's Posco and K- Power and 3.7 million tons from Mexico's Sempra Energy LNG Corp.

Source: Xinhua