BAKU, Jan 23 (Reuters) - The European Bank forReconstruction and Development (EBRD) has made a $200 millionloan to Russia's No. 2 oil producer Lukoil forparticipation in the development of Shah Deniz gas field inAzerbaijan, the bank said.
The loan is the second tranche of financing provided by theEBRD to Lukoil's subsidiary - Lukoil Overseas Shah Deniz Ltd(LSD) - for the company's activity in the Shah Deniz project.The first tranche totalled $180 million and was allocated in2005.
"Financing is sought for the stage I extension of (ShahDeniz) field development and implementation of the more advancedtechnologies, including on the existing terminal and platform,"the EBRD said in a press release.
The total cost of the Shah Deniz I project is estimated at$2.128 billion. LSD holds a 10 percent interest in the project.
Shah Deniz, Azerbaijan's biggest gas field, is beingdeveloped by consortium partners BP, Statoil,Azeri state energy firm SOCAR, Total and others and isestimated to contain 1.2 trillion cubic metres of gas.
Shah Deniz I has been pumping gas since 2006.
BP (BP.)