Turgai Petroleum, a joint venture with the equal interests between LUKOIL Overseas and PetroKazakhstan Inc. (part of CNPC group) in Kyzylorda Region of the Kazakhstan, has signed the facility documentation of a pre-export financing for a total amount of $250 million with maturity of 3 years.

BNP Paribas and Citibank act as MLA’s (mandated lead arrangers) and book runners of this deal. The loan will be syndicated. The funds will be used to finance the work program of Turgai Petroleum.

Oktay Movsumov, Vice President of LUKOIL Overseas, noted that this is currently one of the most attractive loans provided to a Kazakhstan producer by foreign banks. According to him, the security package of the credit agreement is limited to pledge of export contracts, and the lenders are not provided with recourse to the joint venture's parent companies.

In 2007, the production volume of Turgai Petroleum totaled 3.5 million tons of oil and 145 million cubic meters of gas.