EBRD to allot credit worth $200 million to LUKoil for Shah-Deniz project

European Bank for Reconstruction and Development (EBRD) has approved allotting LUKoil Overseas Shah Deniz Ltd (LSD) a credit worth $200 million.

EBRD web site reads that the funds are allotted to fund the company’s obligations to expand development of the Azerbaijani Shah-Deniz Phase 1 field.

Allotting of the credit was approved on January 15, 2014.

According to EBRD, total cost of Shah-Deniz Phase 1 is $2.13 billion and share of LUKoil Overseas Shah Deniz Ltd is $212.8 million.

In autumn 2013 LUKoil asked EBRD to allot it credit worth $200 million for the Shah-Deniz project.

“The funding is needed to expand the Shah-Deniz Phase 1 field development and apply more advanced technologies, including on the existing platforms and terminals. The project will also support a wider spreading of private capital in the gas production industry of Azerbaijan,” EBRD reported.

The contract for the Shah-Deniz field development was signed in 1996. The project partners are 

BP (operator with 28.8%), Statoil (15.5%), SOCAR (16.7%), ЛУКойл, NICO, Total (10% each) and TPAO (9%).

* LUKoil is among the biggest independent oil companies in Russia. Its authorized capital totals 21.26 million rubles and it is divided into 850.56 million regular shares. The biggest shareholders are LUKoil President Vagit Alekperov (22.21%) and LUKoil Vice President Leonid Fedun (9.73%).

By December 31, 2012 the proved hydrocarbon resources of LUKoil reached 17.3 billion barrels of oil equivalent, including 13.4 billion barrels of oil and 23.5 trillion cub. feet of gas. During 2012 LUKoil’s oil production totaled 89.9 million tons and gas production – 24.5 billion cub.m. 

LUKoil fully or partially owns modern oil refineries, gas refineries and petrochemical plants in Russia (four oil refineries in Perm, Volgograd, Ukhta and Nizhnii Novgorod) as well as Eastern and Western Siberia (Bulgaria, Romania, Italy and Netherlands). The company owns a wide retail network in 25 world countries (including Russia and US) and 24 oil bases.—0--