IsDB to grant Lukoil with $200 million for Khauzak-Shady site development in Uzbekistan

The Islamic Development Bank (IsDB) will grant Lukoil before the end of 2011with the funds and guarantees for commercial risks for a total sum of $200 million for the increase of the production at the Khauzak-Shady site in Uzbekistan. A governmental representative says that before the end of 2011 IsDB is going to join the consortium of the project's creditors granting funds at a rate of $100 million and guarantees for commercial risks of $100 million.
Earlier Lukoil was going to attract a credit of $500 million on the limited regress principles for financing of the Kandym deposit development and enlargement of production at Khauzak-Shady.
The creditors' consortium will include IsDB, the Asian Development Bank, BNP Paribas (Suisse) SA, The Korea Development Bank, Credit Agricole CIB and UniCredit Group.
In October the Board of directors of ADB approved granting of funds and guarantees for commercial risks for a total sum of $300 million for Kandym development to Lukoil. The guarantees for commercial risks will be secured in the Multilateral Investment Guarantee Agency (MIGA).
In autumn 2007, Lukoil began gas production in Uzbekistan within the bounds of the PSA Kandym- Khauzak-Shady-Kungrad signed in 204 for 35 years. In 2010 Lukoil raised production at the project to 3 billion cubic m. The executed 3D seismic exploration, and new wells drilling and testing will help to raise constant production at Khauzak-Shady to 4 billion cubic m of gas by 2012.
In 2014 Lukoil is going to get early gas at Kandym and to raise production there to 8-10 billion cubic m by 2017.
Currently Lukoil realizes three projects in the state, Kandym- Khauzak-Shady-Kungrad, South Western Gissar and geological exploration at the Uzbek part of the Aral Sea in an international consortium. Within the bound of the first two projects Lukoil is going to produce 18 billion cubic m of gas by 2017 under PSA, and to raise investment to $5 billion USD compared to $1.5 billion now.
Translated by Nadezhda Poltoratskaya

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