According to the head of Indonesia's oil and gas watchdog BP Migas, Rachmat Sudibyo, "BP Plc [is] seeking loans from the Bank of China and Japan Bank for International Cooperation for the construction of Indonesia's third liquefied natural gas plant in the Bird's Head area of Papua province."

"The discussion with JBIC was in the final stages, while discussion with the Bank of China was still in the preliminary stages. [However], the Bank of China has shown willingness to provide a loan for the project," added Rachmat.

Tangguh, which will cost US$1.3 billion to be built, is expected to begin operations in 2007. It is being built by an engineering consortium made up of JGC Corp, Kellogg Brown & Root and Pertafenikki Engineering.