Sakhalin Energy has secured an additional $1.4 billion in project financing, bringing the total Phase 2 project financing up to $6.7 billion.

The additional debt is provided by a consortium of international commercial banks and insured by Nippon Export and Investment Insurance (NEXI), an Export Credit Agency owned by the Japanese government.

The funds will be used to finance the completion of the full scope of the Sakhalin-2 Phase 2 project, including the ongoing drilling programme, which will enable the Project to achieve its full production capacity.

“Securing this additional debt under the current financial market conditions and support from NEXI is evidence of the creditworthiness, and the strategic and commercial importance of the Sakhalin-2 project for Japan” - said Ian Craig, Sakhalin Energy Chief Executive Officer.

The total Phase 2 financing sets a record for Russia in terms of the amount raised and establishes new benchmarks for future Russian and international oil and gas developments.

October 2009