Bloomberg News

VEB Will Consider Arctic Oil Tankers Loans to Sovcomflot

May 26, 2010

VEB, Russia’s state development bank, may consider loans to OAO Sovcomflot, the country’s largest shipper, to export oil and gas from the Arctic.

The credit would mainly support Sovcomflot shipping oil from OAO Gazprom’s Prirazlomnoye development in the Arctic’s Pechora Sea to ports in western Europe, the Russian government said in an e-mailed statement late yesterday before a VEB board meeting.

Sovcomflot plans to spend $5.5 billion through 2015 on its shipping business and providing services to developments in Russia’s resource-rich Arctic regions. The state company may offer shares or sell bonds as early as this year as it pursues expansion.

Gazprom, which has invited Statoil ASA to join the offshore project, plans to drill its first well at Prirazlomnoye next year. In 2008 the company said it aims to produce 130,000 barrels a day of oil from the field.

To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@bloomberg.net.

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.


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