UzAssets Investment Company under the State Assets Management Agency has reached an agreement with “Sanoat Energetika Guruhi” PE LLC to sell a 100% stake in UzAssets in the charter capital of Fergana Oil Refinery LLC for $100 million.
KPMG Valuation and Consulting LLC was recruited as a privatization consultant to organize the sales process. An international appraisal company included in the Big4 (“Big Four”) was involved to assess the state’s share.
The company is one of the largest oil refineries in the country with an initial production capacity of 6.5 million tons, the history of which dates back to 1959, including the “Olti-Arik fuel production capacity”, which was launched in 1907.
In the 60s of the last century, Fergana Oil Refinery was supplied with raw materials from the fields of western Siberia, and was also part of the system of processing raw materials of the entire USSR. For the past 20 years, the plant has not been modernized or reconstructed. Over the past 10 years, an average of 1-1.5 million tons of oil has been refined annually.
Under the agreement, the buyer will modernize the plant, modern and environmentally friendly gasoline, diesel fuel meeting the requirements of “Euro-5”, jet fuel “Jet a-1”, increase production of liquefied natural gas, modernization of oil units, production capacity of at least 2 undertakes to meet its investment commitments of more than $380 million to arrange for the increase to 1 million tons.
“Sanoat Energetika Guruhi” PE LLC is the largest private vertically integrated oil and gas company in Uzbekistan. The company currently owns 103 fields with subsoil use rights and accounts for about 80% of oil production and about 22% of proven gas reserves. In addition to oil and gas production, the company produces gasoline, diesel, petroleum, aviation kerosene and a number of other high value-added products.
