LUKoil Overseas, operator of the foreign extracting projects, has signed the agreement with the European Bank for Reconstruction and Development (EBRD) to use the second tranche worth $200 million of the loan, which has been earlier allotted for implementation of the Shah-Deniz project in Azerbaijan, the company reported.
The funds will be used for further development of the Shah Deniz Phase 1 using the existing production and transport capacities.
The funding was provided on the non-regressive basis for the period of 5 years with the interest rate LIBOR +1.5% per annum.
Total sum of the loan provided by EBRD to LUKoil to implement the Shah-Deniz project (including initial credit agreement signed in 2005 for the period of 12 years) is $380 million.
In 2013 9.7 billion cub.m. of tank gas (LUKoil’s share – 725 million cub.m.) and 2.45 million tons of oil and gas condensate (LUKoil’s share – 184,000 tons) has been extracted from the Shah-Deniz.
The Shah-Deniz project partners are BP (operator) – 29.8%, Norwegian Statoil – 15.5%, Iranian NICO – 10%, French Total – 10%, Russian LUKoil – 10%, Turkish TPAO – 9% and SOCAR – 16.7%. The Shah-Deniz field’s resources are estimated at 1.2 trillion cub.m. of gas.—0—
Economics
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Last week, Azerbaijani media reported an impending increase in retail bread prices, attributing the rise to an increase in product weight. The following day, an official notification confirmed that the government had no intentions of sanctioning a bread price hike in the country. However, the threat of a price increase for this staple food remains for another reason.
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S&P Global Ratings has revised its risk assessment of Azerbaijan’s banking sector, upgrading the outlook from "stable" to "positive."
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In recent days, there have been claims that bread prices in Azerbaijan have risen. Social media users report that the price of bread has increased by 5-10 qepiks. According to consumer complaints, it is difficult to find weight information on factory-produced bread, commonly known as "zavod çörəyi" in Azerbaijan. In many cases, bread packaging does not include weight details. Similarly, bread sold at smaller bakeries and tandir houses often lacks information apart from the price.
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A trilateral meeting of the foreign ministers, transport ministers, energy ministers, and heads of customs services of Russia, Iran, and Azerbaijan is set to take place soon to discuss the progress of the Rasht-Astara railway project, a key element of the International North-South Transport Corridor (INSTC). This was announced by Iran’s Ambassador to Russia, Kazem Jalali.
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