Sovcomflot signs MOU with Sberbank on new USD 180 million credit facility
On 23 November 2016, Sovcomflot and Sberbank signed a memorandum of understanding (MOU) paving the way for a new USD 180 million long-term credit agreement with a term of up to 15 years. On behalf of the parties the MOU was signed by Sergey Frank, Chairman and CEO of Sovcomflot, and Herman Gref, CEO and Chairman of the Executive Board of Sberbank.
The credit facility agreement, the subject of the MOU, will finance two Panamax Arctic shuttle tankers within Sovcomflot’s fleet (Mikhail Ulyanov, Kirill Lavrov), built at the Admiralty Shipyards in St. Petersburg and operated under the Prirazlomnoye project (refinancing of credit granted by VEB in 2010 for construction of the mentioned tankers – IAA PortNews ed.).
“The memorandum signed by Sovcomflot and Sberbank is a logical continuation of the successful cooperation between us, both companies being leaders in their respective fields. In 2015, Sberbank became the first Russian bank to provide shipping finance for Sovcomflot’s tankers. Today, Sovcomflot and Sberbank are taking another step forward and declaring their readiness to implement new large-scale projects with high added value,” said Sergey Frank, Chairman and CEO of Sovcomflot.
“Investment in large-scale projects involving the creation of a modern infrastructure and the development of industrial potential of the country is traditionally one of Sberbank’s priorities. We are looking forward to continuing cooperation with reputable customers that are building a stable business, such as Sovcomflot,” said Herman Gref, President and Chairman of Sberbank.
The Prirazlomnoye oilfield is located 32 nautical miles offshore in the Pechora Sea. The offshore ice-resistant stationary platform (OIRSP) Prirazlomnaya was built in Russia for the purpose of oil production, storage and offloading there. It is the first and only platform on Russia’s Arctic shelf. Two unique shuttle tankers – Kirill Lavrov and Mikhail Ulyanov – are used for transportation of all the oil produced there. Built in 2010 at the Admiralty Shipyards for Sovcomflot, these vessels were specifically designed for yearround navigation at low temperatures and in the difficult ice conditions of the Arctic sea basin. Each vessel has Arc6 ice class and a deadweight of 70,000 tonnes. Since April 2014, they have made 43 voyages from Prirazlomnaya, delivering some 2.7 million tonnes of crude oil for customers. Gazprom Neft Shelf is the operator of the Prirazlomnoye project.
PAO Sovcomflot (SCF Group) is one of the world's leading shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as servicing offshore upstream oil and gas installations and equipment. The Group’s fleet comprises 153 vessels with a total deadweight of approximately 13 million tonnes. The company is registered in St. Petersburg with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai. The Group offers a wide range of vessels in the market segments most demanded by major Russian oil and gas companies. With its own technical development and unique approach to advanced technologies, Sovcomflot can meet the most demanding customer requirements, providing effective transportation for oil & gas companies.
Sberbank is Russia’s largest bank and a leading global financial institution. Sberbank holds almost one third of aggregate Russian banking sector assets, it is the key lender to the national economy and the biggest deposit taker in Russia. The Central Bank of the Russian Federation is the founder and principal shareholder of Sberbank owning 50% of the Bank's authorized capital plus one voting share, with the remaining 50% held by domestic and international investors. Sberbank has more than 135 million individual customers and more than 4 million corporate clients in 20 countries. Sberbank has the largest distribution network in Russia with almost 17,000 branches, and its international operations include UK, US, CIS, Central and Eastern Europe, India, China, Turkey and other countries.
