Last Updated March 19, 2008
Turgai Petroleum, a joint venture between Lukoil Overseas and PetroKazakhstan has signed facility documentation for a US$250mn pre-export facility. BNP Paribas and Citi have been mandated as lead arrangers and bookrunners on the deal.
The facility carries a tenor of three years and the loan is due to be syndicated to the commercial market.
According to an official statement from Oktay Movsumov, vice-president of Lukoil Overseas, the loan is one of the most attractive on offer from foreign banks to a Kazakh producer. The security package of the credit agreement is limited to a pledge of export contracts, and the lenders are not provided with recourse to the JV's parent companies.
Lukoil Overseas Holding is a subsidiary of Russia’s largest oil company Lukoil. It is responsible for overseeing the company’s global oil and gas projects. In early March, Lukoil Overseas has also announced its acquisition of new hydrocarbon assets in the Republic of Uzbekistan. In a transaction worth US$580mn, it has completed a deal with Soyuzneftegaz to acquire 100% of SNG Holdings. The deal will allow the company access to fields of south-west Gissar, and the Ustyurt region in Uzkekistan.
PetroKazakhstan is part of the China National Petroleum Corporation (CNPC) group. CNPC acquired the Kazakh company in 2005, and according to an agreement with the Kazakh ministry of energy and mineral resources, CNPC transferred 33% of its shares in PetroKazakhstan to KazMunaiGaz in July 2006, but retained 67% stake in the company.
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