EBRD and "LUKoil" signed a loan agreement in Baku

Baku. 7 August. REPORT.AZ/ "Shah Deniz" project is very important for us, and we are ready to use all opportunities to diversify our activities in the project. Report informs, Oktay Movsumov, head of the project and structured finance department of "Lukoil Azerbaijan" Joint Venture said at today's press conference.

Vice-President for production at "LUKoil Overseas", Sergei Sucok stated, despite all the problems, relations between BP, SOCAR and "Lukoil" are very normal.

Then, signing ceremony of agreement on allocation of $500 million loan to Russia's second biggest oil producer, LUKoil, for participation in the development of Shah Deniz gas field in Azerbaijan was signed between the European Bank for Reconstruction and Development (EBRD) and "LUKoil".

"Shah Deniz" project besides facilitating the provision of gas to Europe, as well will make an influence in gas price of the continent liquefied natural gas market", Eric Rasmussen, the EBRD's Director for Natural Resources Office in London said.

The credit is a half of $1 billion loan to be allocated to Lukoil by the EBRD. The EBRD has already disbursed $380 million to Lukoil's subsidiary, Lukoil Overseas Shah Deniz Ltd (LSD), for the company's activity in the Shah Deniz project. The first tranche totalled $180 million was allocated in 2005, while the second tranche of $200 million was allocated in 2014.

Shah Deniz, Azerbaijan's biggest gas field, is being developed by BP, Azeri state energy firm SOCAR and others and is estimated to contain 1.2 trillion cubic metres of gas.