gets USD 225 million loan to finance its Vysotsk terminal
Posted: 22 September 2003
Vagit Alekperov, President of LUKOIL and Ross J. Connelly, Executive
Vice President and Chief Operating Officer of Overseas Private Investment
Corporation (OPIC), signed a Loan Agreement in Saint-Petersburg
today within the framework of the Second US-Russia Commercial Energy
The Agreement, designed to finance the construction of a terminal
to transship petroleum products on the island of Vysotsk, Leningrad
region, was also signed on behalf of Credit Suisse First Boston
by Jeremy Bennett, Managing Director, Global Head of Credit and
Insurance Structuring, and Kevin Hudson, Managing Director, Head
of Investment Banking for the Emerging Europe.
Under the document signed, American private investment fund HBK
Fund shall extend a USD 225 million credit facility to a special-purpose
company "RPK Vysotsk – LUKOIL-II" for a 12-year
period. OPIC shall provide a guarantee for the amount of USD 130
million, while CSFB, who arranged the financing, shall provide a
USD 75million guarantee.
In its capacity as Financial Consultant to LUKOIL, Fluor Corporation
assisted in structuring and arranging the OPIC-based financing.
The terminal construction is performed under a lump sum turnkey
contract by ZAO «LUKOIL-Neftegazstroy» jointly with
Fluor Corporation, a leading US-based engineering company.
Phase 1 of the terminal with an annual capacity of 2.5 million
tons will be put in operation late in 2003 – early in 2004.
The terminal’s full annual capacity will be approximately
11 million tons. LUKOIL has already invested over USD 170 million
in the construction of the terminal.
"In many respects, this Agreement is the first of its kind
for both LUKOIL and OPIC. For the first time LUKOIL attracts debt
financing with such a long maturity with no oil export receivables
used as collateral. And it is for the first time that OPIC finances
a project with 100% Russian equity ownership. The new terminal will
allow the Company to considerably increase its petroleum products
export capacity whilst reducing the transportation costs",
President Alekperov said.
The terminal project envisages unparalleled measures to protect
The remote location of the terminal guarantees protection of local
Besides, all the oil product storage tanks are double-walled, which
provides for absolute protection against leakages. Safety is also
ensured by ice-class double-hulled tankers.
The Ministry of Natural Resources of the Russian Federation approved
the project and validated its compliance with the effective Environmental
For more information see http://www.lukoil.com.
Posted by Richard Price,
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