Details added (first version posted on 10:51)
Baku, Azerbaijan, Aug. 7
By Anvar Mammadov - Trend:
The European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB) allocated a $1 billion loan to Lukoil for ensuring the company's share of participation in the second stage of the Shah Deniz gas and condensate field's development in the Caspian Sea's Azerbaijani sector.
The ceremony for signing of the loan agreement was held in Baku, Azerbaijan, August 7.
The Black Sea Trade and Development Bank, the French bank Societe Generale, the Bank of China, the Dutch bank ING and the Italian bank UniCredit are the participants of syndication.
As a result, both the EBRD's and the ADB's actual share in the loan will be $250 million.
The contract for development of the Shah Deniz offshore field was signed June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.
As part of implementation of the Shah Deniz project, the annual gas production will increase from 9 billion cubic meters in the first phase by additional 16 billion cubic meters in the second phase.
The second stage of the Shah Deniz field's development is estimated to cost $28 billion.
In the second stage of development of the Shah Deniz, gas will be exported to Turkey and European markets through expansion of the South Caucasus Pipeline and construction of the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
Edited by CN
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