- Lukoil (OTCPK:LUKOY, OTC:LUKOF) has secured $1B in financing to help fund its portion of costs in the expansion of the BP-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 the $28B project; the Russian producer has a 10% stake in Shah Deniz.
- Thwarted by Gazprom’s (OTCPK:OGZPY) 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.