Major events in Caspian countries' oil and gas industry for last week (Oct.6-10)

Analysis Materials 14 October 2014 12:14 (UTC +04:00)

Lukoil increases external borrowing in Shah Deniz-2 project

European Bank for Reconstruction and Development (EBRD) will make a final decision on the allocation of credit to LUKOIL for provision of its interest share in the framework of the second stage of Shah Deniz gas condensate field development in the Azerbaijani sector of the Caspian Sea January 28, 2015, EBRD's website said.

The statement said that the total amount of the loan is $1 billion, half of which will be provided in the form of a syndicated loan of the EBRD and the Asian Development Bank (ADB).

LUKOIL has a 10 percent stake in the project development of the Shah Deniz field.

The total amount of additional funding of the LUKOIL in the framework of the equity in the Shah Deniz 2 project amounts to $3 billion.

"LUKOIL Overseas Shah Deniz" company also plans to attract a loan from ADB, the approval of which is expected on the credit committee Nov. 13, 2016.

The ADB is ready to allocate $450 million of additional funding to LUKOIL Overseas Shah Deniz in connection with the Shah Deniz-2 project, within the framework of which drilling of over 20 wells, the construction of two platforms, creating of subsea infrastructure, expansion of the Sangachal oil Terminal and the South Caucasus gas pipeline are planned.

Kazakhstan in talks to supply AI-92 gasoline from Azerbaijan, other countries

Kazakh Ministry of Energy is in talks to supply AI-92 gasoline from Azerbaijan, Turkmenistan, Belarus, China and other countries, the Ministry of Energy of Kazakhstan said.

The ministry said that the terms, conditions and volumes of supplies are covered by the contracts of the businesses. The terms of the contracts were not disclosed by business entities as it is a trade secret.