Messoyakhaneftegas secures syndicated loan to develop Russia’s northernmost onshore oil and gas-condensate field

28 December 2017

Gazprombank and Sberbank have released credit facilities under the first tranche of a syndicated loan facility for the Messoyakha project, agreed on 22 December 2017. The terms stipulated under the signed credit guarantee envisage the provision of project financing facility in the amount of RUB100 billion for a term of 100 years by a syndicate led by Gazprombank and Sberbank (at RUB40 billion and RUB60 billion, respectively).

The project is being implemented by Messoyakhaneftegaz JSC — a joint venture between Gazprom Neft and Rosneft. Project financing for Messoyakhaneftegaz JSC is structured without recourse to either Gazprom Neft PJSC 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, Messoyakhaneftegaz JSC, 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.”