Sakhalin Energy Investment Company Ltd., the Japan Bank for International Cooperation (JBIC) and a consortium of international commercial banks today signed a project finance contract for Phase 2 of the world’s largest integrated oil and gas development, Sakhalin II.

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

Japan’s leading financial institution gave strong support to Sakhalin Energy, providing $3.7 billion. The consortium will contribute an additional $1.6 billion. The funds will finance the final stages of construction, testing and commissioning of Sakhalin II Phase 2, which will soon start delivering liquefied natural gas to customers in Japan, Korea and the North American West Coast.

“JBIC played a key role in providing project finance for our Phase 1 development. I am therefore delighted that their involvement, supplemented by participation from international commercial banks, for this strategic project is being renewed for Phase 2”, said Ian Craig, Sakhalin Energy CEO.

Tags: Sakhalin Energy, Sakhalin II