LUKOIL OBTAINS LOAN FOR SHAKH-DENIZ PHASE 1 PROJECT IN AZERBAIJAN
LUKOIL Overseas (operator of LUKOIL’s overseas upstream projects) has signed an agreement with the European Bank for Reconstruction and Development (EBRD) to obtain the second tranche of its USD 200 million loan for the Shakh-Deniz project in Azerbaijan.
The funds will be used to finance further development of the Shakh-Deniz Phase 1 project with the existing production and transportation facilities. The loan was raised on a non-recourse basis for 5 years at a LIBOR +1.5% annual interest rate. The total loan amount raised by LUKOIL from the EBRD for the Shakh-Deniz project (including the original 12-year loan agreement signed in 2005) is USD 380 million.
In 2013, Shakh-Deniz produced 9.7 billion cubic meters of commercial gas (LUKOIL's share is 725 million cubic meters), and 2.45 million tons of oil and gas condensate (LUKOIL's share is 184 thousand tons).