"Shah Deniz project is one of the largest gas projects not only in the region but also worldwide,” he said. “The allocation of such a large loan testifies that this project is supported by many people."
Movsumov said that the loan has been delivered to the company for 12 years and with fairly good conditions.
Movsumov thanked SOCAR for assistance in the project preparation, as well as the technical operator of Shah Deniz - BP for assistance in arranging financing.
Allocating a loan testifies that the world`s banks support an investment climate in Azerbaijan, Movsumov said.
Some $250 million of the total funds of the ADB loan will be allocated at the LIBOR rate and the remaining $ 200 million - via an additional funding scheme.
The additional financing will be used to drill more than 20 subsea wells, construct two platforms, create the subsea infrastructure, expand the Sangachal oil terminal and the South Caucasus gas pipeline.
The contract for development of the Shah Deniz offshore field was signed June 4, 1996. The field’s reserve is estimated at 1.2 trillion cubic meters of gas.
As part of implementation of the Shah Deniz project, the annual gas production will increase from 9 billion cubic meters in the first phase by additional 16 billion cubic meters in the second phase.
In the second stage of development of the Shah Deniz, gas will be exported to Turkey and European markets through expansion of the South Caucasus Pipeline and construction of the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
The shareholders are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Malaysia’s Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).
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