MOSCOW – Lukoil has signed a 12-year credit-facility agreement with a consortium of banks to borrow $1 billion to fund its share of the Shah Deniz Stage 2 development in the Azeri sector of the Caspian Sea.
The European Bank for Reconstruction and Development, the Asian Development Bank, and the Black Sea Trade and Development Bank will collectively lend $560 million, with the remaining $440 million provided over a 10-year period by the ING Bank N.V., the Bank of China, UniCredit AG, and Societe Generale.
Total investments for Stage 2 are around $28 billion, excluding construction of the export pipeline systems. Once onstream, production from Shah Deniz is expected to reach 25 bcm (883 bcf).
Operations started in April 2010. The field’s proven oil reserves are 113 MMbbl.