Akin Gump Advises LUKOIL on $660 Million Financing in Uzbekistan

(London) – Akin Gump has advised PJSC LUKOIL (Russia) as guarantor and LUKOIL Overseas Uzbekistan Limited (Cyprus) as borrower on a $660 million financing to fund the construction of a gas processing complex in Uzbekistan in connection with the development of the Kandym gas fields. The transaction signed today.

The complex will be constructed by Hyundai Engineering Co., Ltd (Korea) and ENTER Engineering Pte., Ltd (Singapore) in line with a $2.6 billion Engineering, Procurement and Construction contract. The financing is supported by Korean export credit agency Korea Trade Insurance Corporation (K-sure). The plant will add more than 8 billion cubic meters throughput capacity to the gas processing capacity of Uzbekistan.

This follows the successful $500 million project financing for the Khauzak-Shady and Kandym gas fields on which Akin Gump advised LUKOIL in 2012. The combined project is the biggest financing ever to a private company operating in the fuel and energy sector in Uzbekistan. (Click here to read more.)

Akin Gump London finance partner Robert Aulsebrook and Moscow corporate partner Natalia Baratiants led the team advising PJSC LUKOIL and LUKOIL Overseas Uzbekistan Limited with support from London counsel Inderveer Hothi and London associate Nicholas Pascal.

PJSC LUKOIL is Russia’s second largest oil and gas company in terms of reserves and the largest Russian oil business group with annual sales of over $100 billion. It was the first Russian company to receive a full listing of its shares on the London Stock Exchange.

Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.

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