LUKOIL obtains loan for Shah-Deniz phase 1 project in Azerbaijan

Февраля 27, 2014

LUKOIL Overseas (operator of LUKOIL Group's overseas upstream projects) has signed an agreement with the European Bank for Reconstruction and Development (EBRD) to obtain the second tranche of its $200 million loan for the Shah-Deniz project in Azerbaijan.

The funds will be used to finance further development of the Shah-Deniz Phase 1 project with the existing production and transportation facilities. The loan was raised on a non-recourse basis for 5 years at a LIBOR +1.5% annual interest rate. The total loan amount raised by LUKOIL from the EBRD for the Shah-Deniz project (including the original 12-year loan agreement signed in 2005) is $380 million.

In 2013, Shah-Deniz produced 9.7 billion cubic meters of sales gas (LUKOIL's share is 725 million cubic meters), and 2.45 million tons of oil and gas condensate (LUKOIL's share is 184 thousand tons).