Gazprombank and Sberbank have released credit facilities under the 1st tranche of a syndicated loan facility for the Messoyakha project, Gazprom neft reported on December 28, 2017.
The terms stipulated under the signed credit guarantee envisage the provision of project financing facility in the amount of RUB 100 billion for a term of 100 years by a syndicate led by Gazprombank and Sberbank (at RUB 40 billion and RUB 60 billion, respectively).
The project is being implemented by Messoyakhaneftegaz - a joint venture between Gazprom Neft and Rosneft. Project financing for Messoyakhaneftegaz is structured without recourse to either Gazprom Neft or Rosneft, and will not, accordingly, increase the gearing of either of these companies.
Cutting-edge technologies used in infrastructure development at the Vostochno-Messoyakhskoye field have allowed greater speed and quality in the construction process, guaranteeing the effectiveness of subsequent project operations. This has also made it possible to avoid using cost-intensive technologies in oil production, processing and transportation, with subsequent positive impacts on project profitability.
Victor Sorokin, CEO of Messoyakhaneftegaz commented: «Together with our shareholders we have successfully completed work on one of the most significant transactions in the history of the Russian project financing market. Banks’ interest in participating in this project confirms the considerable potential of this asset and the effectiveness of the technologies we are utilising in developing the hard-to-recover onshore reserves of the Arctic.»
To read the article in Russian.