EBRD postponed credit for shah-deniz development promised to LUKoil till 2014

The European Bank for Reconstruction and Development (EBRD) refuses to approve the credits related to the energy sector of Azerbaijan in 2013.

Russian LUKoil oil company has become another victim lf this policy: EBRD has refused to allot it credit to fund the operations for development of the Shah-Deniz gas condensate field in Azerbaijan in 2013.

EBRD reported that discussion of the issue of allotting of the credit to LUKoil Overseas Shah Deniz Ltd (LSD) to fund its commitments for expanding of the Shah-Deniz Phase 1 was postponed from December 10, 2013 till January 15, 2014. The formal reason was that the final review of the project was no ready.

LSD’s share in the project constitutes 10%. EBRD still considers possibility of allotting the company $200 million worth credit. LSD company is owned by LUKoil Overseas company. Total cost of the Shah-Deniz Phase 1 expansion is $2128 million and LSD’s share in it is equal to $212.8 million. 

EBRD has also earlier postponed allotting of credit to SOCAR for its project in Turkey till 2014.—0—