Lukoil receives 1bln-loan for Shah-Deniz

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Lukoil Overseas Shah-Deniz Ltd. (100% affiliate of LUKOIl) signed an agreement with the consortium of banks in Baku about raising a loan in the amount of $1bn for 12 years as part of the second phase of the PSA agreement on Shah-Deniz project in Azerbaijan.

Oxu.Az reports citing the company that EBRD, ADB and Black Sea Trade and Development Bank will extend a $560mln-loan for the term of 12 years. The syndicate of commercial banks which includes ING Bank N.V., Bank of China, UniCredit AG and Society Generale will provide a loan in the amount of $440mln for 10 years via B-loan program with the mediation of EBRD and ADB.

The implementation of the second phase of PSA on Shah-Deniz started in December of 2013. The overall volume of investments made by operating consortium (BP - 28.83%, TPAO-19%, Petronas - 15.5%), SOCAR - 10%, Lukoil - 10%, NICO - 10%, SGC - 6.67%) will make nearly $28bn without construction of export pipelines.

The overall output at the peak of the first and second phases of the project will reach 25bn cubic meters of gas per year.