Lukoil gets $1 billion for participation in Shah Deniz project

The European Bank for Reconstruction and Development (EBRD) has allocated $1 billion for ensuring the company’s share of participation in the second stage of the Shah Deniz project.

"The Shah Deniz project is one of the largest gas projects not only in the region but also worldwide. The allocation of such a large loan testifies that this project is supported by many people," the head of the Project and Structured Finance Department at LukOil, Oqtay Movsumov, said.

He said that the loan has been delivered to the company for 12 years and with fairly good conditions, Trend reports.

According to Oqtay Movsumov, the allocated loan testifies that the world's banks support the investment climate in Azerbaijan.

Additional financing will be used to drill more than 20 subsea wells, construct 2 platforms, expand the Sangachal oil terminal and the South Caucasus gas pipeline.

The Shah Deniz field’s reserve is estimated at 1.2 trillion cubic meters of gas. The shareholders are UK's BP, Malaysia’s Petronas,  Iran's NICO, Turkey's TPAO and Azerbaijan's AzSD.