OREANDA-NEWS. The Banks says that until 26 May the EBRD will seek to engage a consulting company or a group of firms (the Consultant or the Lenders Supervisor) in order to provide an ongoing review and monitoring of Project development and to ensure compliance with commitments agreed in Loan Agreements for LOSD (Lukoil Overseas Shah Deniz Ltd) and LOSDM (Lukoil Overseas Shah Deniz Midstream Ltd) (together The Borrowers) and related documentation (the Assignment). The Consultant shall also assist the Bank and the Borrowers in the possible syndication of part of the Loans in the future.

Consultant shall provide the EBRD with semi-annual updates of the models, receive, screen, review and summarise all the Project related documentation and in cases requested by EBRD and any possible co-lenders (Participating Banks) to provide an independent technical opinion changes to development plans (including any cost overruns) and any other related technical matter.

Consultant shall undertake the following tasks:

1. Model Updates
(a) Review the Shah Deniz and South Caucasus Pipeline model updates, based on the periodic updates by the Shah Deniz Consortium Operator (BP or the Operator);

(b) Input Phase 1 assumption changes in the Lukoil model and present the updates on a semi-annual basis to the Bank (and the Participating Banks, if any);

(c) Calculate the actual and projected financial ratios derived from the model, in accordance with the respective Loan Agreements.

2. Documentation Updates
The Consultant will be also required to receive, screen, review and summarise for the Bank and the Participating Banks the periodic Project-related information provided by the Borrowers and the Projects operators. In particular the Consultant shall be required to:

(a) Receive and review all the Projects-related documentation and statements, described in the Loan Agreement of each Project (except for environmental and insurance)

(b) Confirm that the information above was furnished in a complete and clear manner, and if not, contact the Borrowers and obtain clarifications required

(c) Provide a semi-annual update to the Bank on the following benchmarks to be set by the EBRD (the Shah Deniz consortium to enter the Georgian gas market by supplying gas on a commercial basis (i.e. non-barter); to supply 10-12% of total Azeri domestic gas markets; implication of reduced tariffs for and increased quality of gas supplied to the Azeri and Georgian markets)

3. Additional Tasks

The Consultant shall also:

(a) assist the Bank in conducting a preliminary evaluation of the proposed Phase 2 expansion of the Shah Deniz and SCP Projects, which is expected to be sanctioned in late 2010

(b) accompany the Bank in a site visit in its periodic monitoring trips to the Projects (normally once a year)

(c) certify completion of the both Projects in accordance with requirements stipulated in the Loan Agreements

(d) be available for consultation by (and expression of opinion for) the Bank on important/significant matters related to Project-related technical information provided by the Borrowers, AGSC, SCPC and the Operator

(e) be available for assisting the Bank with any potential partial syndication of the financing in the future, should the Bank decide to carry it out.

The Assignment is expected to start in September 2010 and has an estimated overall duration of approx. 4 years. Its maximum budget is 800,000 euro.

Bank Contact Person:

Martin Ehrenberg – EBRD Principal Advisor;

One Exchange Square

London EC2A 2JN

Tel: + 44 20 7338 7657

e-mail: EhrenbeM@ebrd.com

Earlier the EBRD allocated USD110 million and USD70 million respectively to LUKOIL for financing its 10% equity stake in the Shah Deniz PSA and South Caucasus Project.