LUKoil received $200 million worth credit for Shah-Deniz-1 from EBRD

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—