LUKoil plans to borrow money from EBRD to develop Shah-Deniz field

  LUKoil Overseas Shah Deniz Ltd plans to borrow $200 million from the European Bank for Reconstruction and Development (EBRD) for development of the offshore gas condensate field Shah-Deniz in Azerbaijan, reported the bank.

LUKoil Overseas Shah Deniz Ltd is 100% daughter company of LUKoil Overseas, operator of LUKoil’s foreign projects.

“We will borrow funds to expand the Shah-Deniz Phase 1 and apply more advanced technologies on the terminals and platforms,” read the materials.

Total costs for expanding of the Shah-Deniz Phase 1 are estimated at $2,128 billion. The share of LUKoil Overseas Shah Deniz will total $212.8 million.

Total resources of Shah-Deniz are estimated at $1.2 trillion cub.m. of gas and 240 million tons of condensate. The Phase 1 of the field development envisages production of 178 billion cub.m. of gas and 34 million tons of condensate. Maximum gas production from the Phase 1 will total 8.6 billion cub.m. of gas and 2 million tons of condensate a year. 

The Shah Deniz project partners are BP (operator with 25.5%), Statoil (25.5%), SOCAR (10%), LUKoil (10%), NICO (10%), Total (10%) and TPAO (10%).—0--