US company extends loan agreement in Azerbaijan

Business Materials 8 June 2016 09:06 (UTC +04:00)

Baku, Azerbaijan, June 8
By Maksim Tsurkov - Trend:

The US Greenfields Petroleum Corporation for the sixth time has prolonged the loan agreement on the allocation of funds to develop the Bahar-Gum Deniz block of Azerbaijani oil and gas fields in the Caspian Sea and the financing of operational activity of Azerbaijan's Bahar Energy Limited Operating Company, said the Greenfields Petroleum in a message.

Bahar Energy Limited is developing the oil and gas block, including Bahar and Gum Deniz deposits in the Azerbaijani sector of the Caspian Sea, the message said.

"According to the signed document, the repayment period on the loan agreement has been extended from November 25, 2013 till June 30, 2016," the message said.

"This will give the company additional time to complete the transaction with Baghlan Group, which is being liquidated, and its liquidator for the acquisition of a 66.6 percent share in Bahar Energy Limited Operating Company and restructuring of the main part of the loan worth $27 million, including accrued interest," the message said. "The interest rate will vary within 15-20 percent."

The company intends to close the deal on the acquisition of a share in Bahar Energy Limited Operating Company soon.

Previously, SOCAR signed a production sharing agreement (PSA) with Bahar Energy Ltd. for exploration, rehabilitation, development and extraction at the Bahar-Gum Deniz block.
The PSA's second part involves an exploration at the Bahar-2 structure.

Bahar Energy Ltd., according to initial estimates, will invest $1 billion for implementation of work under the PSA. Bahar field, located 40 km southeast of Baku, the capital of Azerbaijan, has been developed since 1969.