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Saturday, 11 May 2019

Throughout the early 2010s, lawyers of Kosta Legal were involved in preparatory work for the realisation of the later suspended Oltin Yo'l GTL project for the construction of a GTL plant near the Shurtan gas chemical complex.

Intending to represent the interests of potential lenders, lawyers of Kosta Legal participated in structuring lending arrangements necessary for the implementation of the project. A set of transactional documents was negotiated and drafted in cooperation with London-based top-tier law firms. Substantial work was made to structure future corporate relations (incorporation of SPVs, shareholders agreements, etc.) and to check the compliance of project documentation with the regulatory requirements of Uzbek law. Many techniques accommodating the English law–governed setting of the project with the requirements of Uzbek law, designed and tested during the implementation of the Surgil project, were intended to be re-adjusted and re-used within this new project.

Our client at that stage was the SPV established to manage the project. The GTL plant was expected to process about 3.6 billion cubic meters of natural gas and produce about 1.5 million tons of synthetic fuel meeting ‘Euro-5’ requirements annually. The estimated cost of the project was USD 3.6 billion. Under development since 2009, the project was suspended in 2014, only to be revitalised in 2017 as Uzbekistan’s independent undertaking without the project finance mechanisms being utilised.