Lukoil to Receive $500 mln Loan from EBRD for Azeri Field

Russia’s Lukoil is about to receive a $500m grant from the European Bank for Reconstruction and Development (EBRD) for the development of Azerbaijan’s offshore Shah Deniz project. 

The loan, which will be given to Lukoil by the EBRD and the Asian Development Bank (ADB), will help the Russian company to finance its interest in the project in the Caspian Sea.  

Lukoil has a 10% interest in the Shah Deniz field managed by BP plc. 

According to Reuters, the credit is a half of $1 billion loan to be allocated to Lukoil by the EBRD and the Asian Development Bank (ADB). 

The EBRD and ADB were appointed by Lukoil as the mandated lead arrangers for the transaction, the European bank wrote on its website. 

‘We believe the project is being managed and monitored in a responsible manner, consistent with the EBRD Environmental and Social Policy, even though the ESIA package of documents available in the public domain are not fully compliant with EBRD PRs.’

The EBRD already gave $380 million to Lukoil's subsidiary, Lukoil Overseas Shah Deniz Ltd (LSD), for the activities in the Caspian Sea.

Earlier this week, the EBRD announced it is investing in energy reform and transmission system upgrade in Tajikistan.

‘The EBRD is providing a US$ 110 million loan to national power utility of Tajikistan, Barki Tojik to finance construction of the power converter station and related infrastructure in Tajikistan, as part of the high-voltage transmission line project Central Asia South Asia Electricity Transmission and Trade, otherwise known as CASA-1000’ reads a note released on Monday.