BTC to attract large syndicated loan
Baku, Azerbaijan, Nov. 13
By Maksim Tsurkov - Trend:
The Baku-Tbilisi-Ceyhan pipeline consortium (BTC) has signed an agreement with eight banks on the allocation of a syndicated loan worth $1.6 billion, a source in the oil and gas market of Azerbaijan told Trend Nov.13.
The source added that the loan was granted for a period of five years.
"The credit line is open until December 2020 without the right for regress", the source said. This would enable the creditor to use only those assets that were stipulated in the contract in order to repay the loan in case of the borrower's default.
"The club of creditor banks includes MUFG, Sumitomo Mitsui Banking Corporation, Bank of China, HSBC, Industrial and Commercial Bank of China, Société Générale, Citi and BNP Paribas Fortis. Statoil, which is one of the shareholders of the BTC, will finance its share through an affiliated company," according to the source. "The funds will be used to refinance the project."
The total length of the BТС is 1,768 kilometers including a 443 kilometer-long section running through Azerbaijan, a 249-kilometer long section in Georgia and a 1,076-kilometer long section in Turkey. The construction of the pipeline started in April 2003. It was filled with oil on May 18, 2005.
BTC Co. shareholders are: BP (30.1 percent), AzBTC (25 percent), Chevron (8.9 percent), Statoil (8.71 percent), ТРАО (6.53 percent), Eni (5 percent), Total (5 percent), Itochu (3.4 percent), Inpex (2.5 percent), ConocoPhillips (2.5 percent) and ONGC (2.36 percent).
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