Indonesian oil company Medco Energi Internasional has secured a US$260mn reserve-based revolving facility from Standard Chartered and Bank Mandiri.

The seven-year facility will be used by the company to finance its Senoro upstream gas project in Central Sulawesi.

The loan is split equally between the two banks, both of which acted as mandated lead arranger, bookrunner and underwriter.

The project is expected to start production at the end of 2014, and will supply a daily average of 250 million standard cubic feet to the Donggo Senoro liquefied natural gas refinery. At peak production, the plant will produce gas concentrates to the tune of 10,000 barrel oil equivalent a day.

According to a statement issued by Medco Energi, the project is currently at 23% completion.

President director and CEO of Medco Energi Lukman Mahfoedz comments on the transaction: “The signing of this loan agreement is an important milestone for the Senoro project in order to be completed by the end of 2014. With the completion of this project, the company will expand its production asset portfolio and strengthen operational cashflow in the long term.”