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Stockholm-listed Alliance Oil secures USD760m to upgrade refinery.

NORDIC BUSINESS REPORT-9 August 2010-Stockholm-listed Alliance Oil secures USD760m to upgrade refinery(C)1994-2010 M2 COMMUNICATIONS

9 August 2010 - Stockholm-listed Alliance Oil Company Ltd (STO: AOIL) said today that its subsidiary OJSC Khabarovsk Refinery has signed long-term project financing agreement for some USD760m with Russia's state-run bank Vnesheconombank (VEB).

The loan has a tenor of 12 and 13 years depending on tranches and is split among three tranches of USD239m, EUR218m and USD240m, respectively.

The first two tranches are to be repaid during ten years in equal semi-annual instalments and the grace period will run until December 2012. The third tranche is to be repaid within nine years and there is a grace period until January 2014.

This capital injection will support the unit's extensive reconstruction and modernisation programme, including construction of hydrofining and hydrocracking facilities, aimed at enhanced refining yields and higher quality petroleum products.

The refinery's Nelson complexity index will increase to the level of 9.9 from the current 3.4 and the depth of refining will improve to 93% from 61%. The production capacity will rise to 90,000 barrels of oil per day (boepd) from 70,000 boepd. The programme is scheduled to be completed in 2012.

(EUR1 = USD1.3)

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Publication:Nordic Business Report
Date:Aug 9, 2010
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