Kosta Legal has successfully assisted an Asian company on negotiating and arranging its natural gas survey and mapping works with the prospect of concluding a production-sharing agreement with the Uzbek government, if sufficient resources are located.
Extensive work has been done to prepare drafts of relevant documents, including application documents and agreements, to assist with reshaping the company’s special purpose entity in Uzbekistan (“SPE”) and to get necessary permits from state regulators. A particular challenge of the engagement was to draft and negotiate terms of the company’s activities to be contacted through SPE with state-owned companies being co-members of SPE. Since a protracted chain of command exists in Uzbek state-owned companies, it is oftentimes a hard task to secure a timely approval of a particular deal, and significant effort is needed to negotiate each important term and to speed up the process.
Our client was a subdivision of a major East Asian conglomerate, being active in the oil and gas industry. The company is well-known as an experienced oil and gas EPC contractor as well as for its surveying and mapping works.