28 Sep 2010 13:54

Sakhalin-2 operator plans to pay off loans by 2014

YUZHNO-SAKHALINSK. Sept 28 (Interfax) - Sakhalin Energy, the operator of the production-sharing Sakhalin-2 project, intends to settle up on credits and loans raised for the project by the year 2014, a company source told the press.

"This will allow Sakhalin Energy to ensure payment of the state's share in full measure after 2014," the source said. "Before 2014, we have to pay off all credits and debts, and then project profits will be greater and [state share] settlements will be made in full volume."

The overall project price tag for the second phase of the Sakhalin-2 project is $6.7 billion. Of that, the last project-financing credit was $1.4 billion raised in October of last year.

The Sakhalin Energy shareholders are Gazprom with 50%, Royal Dutch Shell with 27.5%, Mitsui with 12.5%, and Mitsubishi with 10%.