NEW YORK (AP) _ A government agency on Thursday agreed to guarantee loans and insure Texaco Inc. against political risk in a project to produce oil and gas from dormant wells in western Siberia.

The Overseas Private Investment Corp., a federal agency, agreed to provide about $28 million in guarantees and insurance for Texaco's $80 million project to restore the oil and gas wells in a field about 200 miles south of the Arctic Circle.

Texaco has resumed producing from nine of the 40 idle wells, pumping about 4,000 barrels per day of crude, the company said.

Aside from the loan guarantee, the government agency insured Texaco against losses from political violence, expropriation and inconvertibility of currency.