Lukoil PJSC, the Russian oil company with the most overseas assets, signed a $1 billion loan deal to fund the expansion of the BP Plc-led Shah Deniz natural gas project in Azerbaijan.
The European Bank for Reconstruction & Development and the Asian Development Bank arranged two loans to help Lukoil’s finance its share of $28 billion project, according to a statement on Friday from the Russian producer. The company has a 10 percent stake of Shah Deniz.
Thwarted by Gazprom PJSC’s pipeline monopoly from exporting its gas output, Lukoil has turned to its overseas units for access to world markets. The Caspian’s Shah Deniz project already supplies Turkey, while gas from Lukoil’s Uzbek projects is shipped to China.
The EBRD and ADB provided a 12-year $560 million credit facility and helped arrange a $440 million 10-year loan from a group comprised of ING Bank NV, Bank of China, UniCredit AG and Societe Generale SA, according to the statement.