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EBRD approves loan for Lukoil Overseas within Shah Deniz project

23 January 2014 [12:13] - TODAY.AZ
The European Bank for Reconstruction and Development has approved a loan of 200 million dollars for the Lukoil Overseas Shah Deniz Ltd ("LSD") within the Shah Deniz gas and condensate field development project in Azerbaijan, according to the Bank's report.

The loan was approved by the Board on Jan. 15.

LSD is Lukoil Overseas' 100-percent subsidiary. The company holds a 10-percent interest in the Shah Deniz field.

The proposed financing is a pre-planned increase to the existing exposure of the Bank to the LSD relating to the development of the Shah Deniz field in Azerbaijan, the report said.

Financing is sought for the stage 1 extension of field development and implementation of the more advanced technologies, including on the existing terminal and platform.

Total Shah Deniz Stage 1 extension and modernisation project cost estimate is 2.128 billion dollars, according to the EBRD's data. LSD stage 1 project cost estimate is 212.8 million dollars.

The contract for the development of the offshore Shah Deniz field was signed on June 4, 1996.

Participants to the agreement are: BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - 9 percent and SOCAR - 16.7 percent.



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