Australian firm Tap Oil has signed a US$50mn loan from Commonwealth Bank of Australia (CBA) for the Manora oil development in Thailand.

To be drawn down in the second half of 2013, the facility has a four-year tenor, but Tap Oil expects to repay it within the first 24 months of start of production at Manora.

CBA has extended a further A$20mn corporate loan to Tap Oil, split between a A$10mn revolving facility available for general corporate purposes and A$10mn as a contingency in case of any Manora cost overruns.

“The debt facilities, along with Tap’s current cash balance of A$84mn and its ongoing revenue from its third party gas contracts, provides the company with considerable flexibility in funding the development at Manora, undertaking exploration activities and taking advantage of other opportunities as they arise,” Tap Oil says in a statement.

First production from the Manora oil development is expected in early 2014, and the firm says the project remains on target, with key contracts awarded, and construction having commenced on the platform and floating storage and offloading vessel.