Russia's LukOil arranges $2 billion loan from Citigroup to buy Nelson Resources

By Reshmi Basu

New York, Oct. 13- OAO LukOil, said its wholly owned subsidiary, LukOil

Finance Ltd. (Gibraltar) obtained a $2 billion credit facility from Citigroup to buy a controlling stake in Nelson Resources Ltd. of Bermuda.

The loan was extended on an unsecured basis and was priced at Libor plus 50 basis points. OAO LukOil will guarantee the loan.

The company said this was the largest single corporate loan it ever raised.

If 75% of Nelson's shareholders approve the deal, LukOil will acquire 100% of the fully diluted common shares of Nelson Resources for $2 billion in cash. The special shareholders' meeting is expected to take place in late November.

Moscow-based LukOil is a vertically integrated oil company

Nelson is an oil exploration and production company operating in Kazakhstan.

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