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Continuous support in implementation of the Surgil Project

Saturday, 11 May 2019

For many years, lawyers of Kosta Legal supported the implementation of the well-known Surgil Project, an integrated gas-to-petrochemicals project developed in Uzbekistan by Uz-Kor, an Uzbek Korean joint venture created in May 2008.

Our lawyers were engaged in the project from its onset, providing extensive advice on a variety of legal matters including financial, contract, land and real estate, environment protection, oil and gas, corporate, employment, taxation and customs legislation issues. Our experts made significant contributions to structuring the relevant transactions and SPVs, elaborating sophisticated security arrangements and ensuring compliance with hundreds of regulatory requirements of the Uzbek oil and gas legislation and beyond. Extensive work was made to accommodate the English law–governed setting of the project with the requirements of Uzbek law. Unique transactional instruments were elaborated to make obsolete Uzbek law mechanisms come closer to international standards. It is, thus, well-deserved that all the lawyers engaged in the project were awarded with numerous international awards for structuring a deal of such complexity.

The project represented the largest petrochemical project financing in the former Soviet Union and is the first international oil and gas project financing in Uzbekistan. The USD 2.54 billion debt financing was structured on a non-recourse basis with senior lenders including ADB, CDB, KEXIM, KSURE, Euler Hermes, EKN / SEK and European and South Korean banks. The SPV Uz-Kor was established in 2008, financial documents were executed in 2012, and in early 2015, the construction was completed and the gas and chemicals complex was commissioned.