PetroNeft agrees first tranche of funding with Oil India

Russian oil and gas explorer PetroNeft said it had executed the first tranche of a $35m loan from Oil India to start a work programme in western Siberia.

It said the first tranche was an unsecured loan of $10m. Principal repayments will commence in the fourth quarter of 2019.

"The planned 2017 work programme which will commence the development of the Sibkrayevskoye oil field is currently budgeted at $25m. Oil India have indicated their willingness to fund this with a second loan tranche on similar terms to the one announced today," PetroNeft said in a statement.

"As advised in the company's announcement of 21 March, the loan is conditional on the current management team remaining in place."

"Furthermore, should there be a change in management subsequent to the drawdown of the new loan this would constitute an event of default, requiring immediate repayment of amounts advanced and further requiring PetroNeft to provide its 50% share of funding."