NIOC signs South Pars 9-10 financing

05 December 2003
National Iranian Oil Company (NIOC) has signed a $1,745 million financing agreement to fund the development of phases 9-10 on the South Pars offshore gas scheme. Deutsche Bank is acting as financial adviser and is leading the financing consortium.

The package is a blend of export credits and commercial debt. A $1,220 million export credits tranche will be covered by the Export-Import Bank of Korea and a number of European export credit agencies. The remainder of the debt will be a $525 million commercial facility.

Deutsche Bank was joined in the consortium by BNP Paribas, Commerzbank, ING, Kreditanstalt fuer Wiederaufbau, Natexis Banques Populaires and Societe Generale. Export-Import Bank of Korea is also acting as a direct lender. Deutsche Bank is continuing to seek financial institutions to join the group. The tenor of the loan has yet to be finalised.

The $1,750 million loan will cover 75 per cent of NIOC's financial requirements for South Pars phases 9-10. A consortium comprising South Korea's LG Engineering & Constructionand the local Oil Industries Engineering & Constructionand Iranian Offshore Engineering & Construction Companywas awarded the engineering, procurement and construction (EPC) contract on the project in September 2002 (MEED 20:9:02).

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