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LUKoil borrows $1 bln to refinance Nelson Resources purchase loan

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MOSCOW, June 20 (RIA Novosti) - Russia's largest independent oil producer LUKoil [RTS: LKOH] said on Friday it had borrowed $1 billion to refinance its remaining debt to a consortium of international banks for the acquisition of a Canadian oil company.

LUKoil bought Nelson Resources in 2005. The Canadian company runs Kazakh oil fields believed to contain proven and probable reserves of more than 270 million barrels, as well as gas deposits in the ex-Soviet republic.

The loan will be divided into two tranches, worth $300 million for three years at LIBOR+0.85 and $700 million for five years at LIBOR +0.95%, respectively.

The company said its foreign debt had almost remained unchanged.

LUKoil, which accounts for about 1.3% of global oil reserves and 2.3% of world crude output, produced 96.9 million metric tons (710 million barrels) of oil in 2007.

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