Lukoil gets loan for financing Azerbaijani gas project (UPDATE 2)
Details added (first version posted on 10:51)
Baku, Azerbaijan, Aug. 7
By Anvar Mammadov - Trend:
Lukoil received a $1 billion syndicated loan for ensuring the company's participation share in the implementation of 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.
A 12-year loan worth $560 million will be provided by the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB) and the Black Sea Trade and Development Bank (BSTDB).
The remaining $440 million will be provided by a syndicate of banks for 10 years with the mediation of the EBRD and the ADB through the 'B Loan Program'.
The French bank Societe Generale, the Bank of China, the Dutch bank ING and the Italian bank UniCredit are the participants of the syndication.
Lukoil has a 10-percent share in the project for development of the Shah Deniz field.
The total additional financing for Lukoil, as part of the share participation in the Shah Deniz 2 project, is $3 billion.
The additional financing is to be used for drilling of over 20 subsea wells, construction of two platforms, creation of a subsea infrastructure, and expansion of the Sangachal oil terminal and the South Caucasus Pipeline.
The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
The contract to develop the Shah Deniz offshore field was signed June 4, 1996.
The contract participants are: AzSD with equity participation of 10 percent, SGC Upstream (6.7 percent), BP (28.8 percent), Petronas (15.5 percent), NICO (10 percent), Lukoil (10 percent) and TPAO (19 percent).
During the implementation of the Shah Deniz project, the annual gas output will rise 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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