Gazprom-Led Sakhalin-II Project Receives $5.3 Billion in Loan Financing

The Sakhalin-II project led by Russian gas monopoly Gazprom and the Sakhalin Energy Investment Company, has received $5.3 billion in loan financing.

The Japan Bank for International Co-operation acted as the major creditor by financing $3.7 billion. The rest of the financing was provided by a consortium of Japanese and West European commercial banks.

The structure and amount of the project financing for the Sakhalin-II project investment program had been preliminarily agreed upon in the course of the talks with creditor banks in mid-2006. The total amount of the financing was identified to be $6.7 billion.

Gazprom holds a 50% plus one share stake in the Sakhalin-II development, while Royal Dutch Shell owns 27.5%, Mitsui holds 12.5% and Mitsubishi accounts for a 10% stake.