EBRD OKs LENDING FOR LUKOIL OPERATIONS IN AZERBAIJAN
The committee of directors of the European Bank for Reconstruction and Development (EBRD) has approved 110 million U.S. dollars in loans to co-finance part of LUKoilвЂ™s participating interest in the Shah Daniz gas project.
In its relevant statement, the EBRD has said that the recipient, LUKoil Overseas Holding Limited had also secured an addition 70 million U.S. dollars in borrowing from the Bank to provide funding for the construction of the South Caucasus Gas Pipeline, which has been designed for gas supplies from the Shah Daniz accumulation to Turkey and Georgia.
The EBRD has estimated the Stage-1 Shah Daniz development program would work out to 2.777 billion U.S. dollars, with LUKoil to provide 277.7 million U.S. dollars of the total cost.
Gas from the Shah Daniz field is expected to reach the Turkish market by the winter of 2006, following the signing of a package of relevant sales agreements among project contractors and the Governments of Azerbaijan, Turkey and Georgia.