Project financing deal for Yuzhno-Russkoye field announced “Deal of the Year” in gas sector
News from projects and regions
The Project Finance International (PFI) magazine announced Severneftegazprom’s fundraising program for the Yuzhno-Russkoye oil, gas and condensate field development “Deal of the Year” in the nomination “Gas Deal of the Year”. The funds raised totaled EUR 1.1 billion.
The shareholders of Severneftegazprom and representatives of the company and managing banks as well as financial experts took part in the Award Ceremony in London today.
“The PFI Award is convincing evidence that the foreign financial community recognizes Severneftegazprom as a leading company carrying out business in line with high international standards,” said Director General of Severneftegazprom Stanislav Tsygankov.
Background
The Project Finance International magazine, part of Thomson Reuters, is a leading international publication focused on global project finance analysis. Project Finance International reports on major events on the international financial markets, shows the trends and new opportunities to attract credit resources. Every two weeks Project Finance International publishes borrowing records submitted on project financing principles.
Severneftegazprom holds the hydrocarbons exploration, development and production license for the Yuzhno-Russkoye field situated in the Krasnoselkupsky District, Yamal-Nenets Autonomous Area. ABC1+C2 natural gas reserves of the field exceed 1 trillion cubic meters. In October 2007 the field was brought into commercial operation. In August 2009, a year ahead of schedule, the Yuzhno-Russkoye field reached its annual design capacity of 25 billion cubic meters.
Severneftegazprom has the following shareholding structure: Gazprom – 50 per cent plus six ordinary registered shares, BASF – 25 per cent less three ordinary registered shares and plus three preferred non-voting shares, E.ON – 25 per cent less three ordinary registered shares and three preferred non-voting shares.
In 2007 the Shareholders Agreement defined project financing as the priority method of financing the company’s business. At the preparatory stage foreign banks provided the company with multi-currency bridge loans on a security of shareholders.
In May 2011 the fundraising deal totaling EUR 1.1 billion was closed for the Yuzhno-Russkoye oil, gas and condensate field development project. An international consortium embracing 14 foreign companies and one Russian bank (Gazprombank) granted a credit with maturity date of December 31, 2018 and early repayment options. Societe Generale and RPFB Project Finance acted as financial advisors to Severneftegazprom on the deal. Herbert Smith and Linklaters provided legal support. Severneftegazprom became the first among Gazprom’s production enterprises that on the foreign market managed to attract credit resources based on the project financing principles.