Paul Hastings Represents JBIC In A US$1.2 Billion Financing Deal For The Tangguh LNG Project, Indonesia
Hong Kong/Tokyo (August 2, 2006) – Paul, Hastings, Janofsky & Walker LLP (Paul Hastings), a leading global law firm, has successfully represented Japan Bank for International Cooperation (JBIC) in its financing of the liquid natural gas (LNG) facility being developed for the Tangguh LNG project in Bintuni Bay, Irian Jaya Barat province of Indonesia.
The JBIC financing, which was signed yesterday in Jakarta, has a value of approximately US$1.2 billion.
When the US$5 billion project begins production in 2008, Tangguh will become the third major LNG facility in Indonesia. The partners in the Tangguh LNG project are: BP (37.16%), CNOOC (16.96%), MI Berau B.V. (a joint venture between Mitsubishi Corp. and INPEX Corp. – 16.30%), Nippon Oil Exploration (Berau) Ltd (a joint venture between Nippon Oil Exploration and JOGMEC – 12.23%), KG Berau/KG Wiriagar (a joint venture between Kanematsu Corp., JOGMEC and Mitsui & Co – 10.00%), LNG Japan Corporation (a joint venture between Sumitomo Corp. and Sojitz Corp. 7.35%).
Paul Hastings represented JBIC in all phases of the project financing, including the review of contractual structures, the financing package, and project documentation.
Raj Pande, who led the Paul Hastings team commented, “This transaction is important in several respects: it helps secure a reliable long-term supply of LNG for markets in China, Korea and the US; it involves a unique Indonesian trustee borrowing structure which is essential to such a financing; it is co-financed by the Asian Development Bank and a group of commercial lenders, and also includes a financing component by Chinese banks; and it involves several Japanese participants, which demonstrates their increasing level of activity and commitment to developing Indonesia’s energy sector.”
When completed, the project will consist of two offshore gas platforms and pipelines, the gas liquefaction facility, which has the capacity to purify and liquefy 7.6 million tonnes of LNG per year, jetties and marine facilities.
The Paul Hastings team included Raj Pande, Christian Peterson, Tomohisa Aiko, Yumiko Abe and Michelle Shek.
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