Baku, Azerbaijan, May 29
By Fakhri Vakilov – Trend:
The Government of Uzbekistan by its resolution has approved the main conditions for the sale of the state share in the authorized capital of Fergana Oil Refinery LLC to Trans Asia Resources (Indonesia) or its 100 percent subsidiary, Trend reports citing Uzbek media.
The government has created a working group that will ensure the organization of the market valuation of the Fergana refinery and will conduct an inventory of the company's funds.
The working group will also hold talks with the investor on the state share purchase agreement in the authorized capital of the Fergana refinery.
It is expected that an independent international appraisal company will assess the market value of the state share in the authorized capital of the plant.
Uzbekneftegaz JSC will ensure repayment of the plant’s obligations through the proceeds from the sale of finished products, raw materials, components and revenues from the collection of receivables from the Fergana refinery.
During the first year of operation of the Fergana refinery and after acquiring the state share in the authorized capital, the investor shall attract funds for the working capital of the plant in the amount of not less than $ 120 million for optimal capacity utilization and develop a program to modernize the plant for the production of gasoline and diesel fuel, which meet the requirements of Euro 4 and Euro 5, and lubricating oils according to the API standard of groups II and III.
After the investor obtains the ownership of the Fergana Refinery, the plant will determine pricing policy independently.
Earlier, Trend reported that the head of the state Shavkat Mirziyoyev, at a meeting held on February this year on the development of the oil, gas and chemical industries, instructed that the Fergana Oil Refinery be transferred to the trust management of investors .
Modernization is carried out jointly with the Indonesian company RT Trans Asia Resources in three stages. This company has extensive experience in this field. The participation of a foreign company will contribute to the stable providing the plant with raw materials; upgrading its processing to be in accordance with world standards, and supplying the products to the external market.
This year, the plant is scheduled to attract direct investments in the amount of at least $ 300 million. With these funds, work of 7 out of 11 installations will be restored within two months; 7,100 workplaces will be saved and 450 people will return to work.
Moreover, the supply of the plant with raw materials will double. Starting from 2020, production of high-quality diesel fuel complying with Euro-4 and Euro-5 standards will be initiated. The cost price will decrease and the product quality will increase, which will allow to expand the export potential of the region will expand.
As expected, until 2020, the project will attract investments in the amount of $875 million. This will allow to upgrade the Fergana refinery, which is 60 years old, and the Altyaryk oil refinery, established 110 years ago, and to to manufacture export-oriented products.
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