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Assisting creditors and contractors of Russian Lukoil for implementing Uzbekistan-based projects

Saturday, 11 May 2019

On many occasions, lawyers of Kosta Legal have provided legal assistance to lenders and contractors of Russian Lukoil, which has been operating in Uzbekistan since 2004.

Lawyers of Kosta Legal have provided legal assistance to foreign financial institutions in elaborating sophisticated lending arrangements to allow Lukoil to perform its development commitments under production sharing agreements (“PSA”) with the Uzbek government. Lending mechanisms along with security arrangements have been devised by our lawyers in cooperation with UK colleagues. Services have also been provided to company’s foreign contractors, including numerous companies from Japan and South Korea. A number of EPC contracts have been drafted for these purposes with intricate sector-specific regulations being taken into account and many rounds of negotiations having been held.

Lukoil is a Russian multinational energy corporation headquartered in Moscow. It is one of the largest publicly traded, vertically integrated oil and gas companies in the world, accounting for more than 2% of the world's oil production and around 1% of its proved hydrocarbon reserves. For many years now, the company has been confidently expanding its presence in Central Asia and is currently one of Uzbekistan’s largest investors. The company works under PSAs with the Uzbek government within the framework of the so-called Kandym-Khauzak-Shady and Gissar projects, partnering with the Uzbek state-owned holding company Uzbekneftegaz.