The terminal will enable Lukoil to export additional quantities of crude and oil products annually by December 2004. "Fluor is very pleased to be working together with Lukoil Neftegazstroy to build this interesting and important project for Lukoil," said Jeff Faulk, Fluor's group president of Oil, Gas & Power.
The project includes two tank farms, a marine jetty, a railroad station and dredging in the Gulf of Finland to allow for the passage of double-hulled crude and product ice-breaker tankers. The project will comply with the stringent international environmental standards set by the World Bank, the Overseas Private Investment Corporation, the Baltic Marine Environment Protection Commission and the International Maritime Organization.
Under the scope of Fluor's technical services agreement with Lukoil, which preceded the engineering, procurement and construction contract, Fluor developed the project's environmental impact assessment, assisted in preparing other health, safety and environment documents, and recommended design modifications to ensure that the project complies with international environmental and safety standards, including those of the World Bank.
Fluor was also Lukoil's exclusive financial consultant for the project. In this capacity, Fluor assisted Lukoil to structure and arrange the project's long-term financing. Financing consists of a 12-year, $225-million loan from HBK Fund LP, based in Dallas, Texas, to "RPK - Vysotsk LUKOIL II," the special purpose company owning the terminal. OPIC provided a $130-million loan guarantee, while Credit Suisse First Boston arranged the financing and provided a $75-million loan guarantee.
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