The investment company UzAssets under the State Assets Management Agency (SAMA) announced the sale of the 100% stake in the Fergana Oil Refinery (FOR) to Sanoat Energetika Guruhi (former Jizzakh Petroleum) for $100 million, the SAMA said in a press release.

The privatization was advised by KPMG Valuation and Consulting, with Dentons involved as legal consultant for the deal.

An investment teaser was sent to more than 30 different foreign and local oil and gas investors, of which the public sale process continued with the participation of three investors.

“Taking into account the recommendations of KPMG Valuation and Consulting, based on the study of the received proposals, the most suitable proposal was selected that meets all the established qualification criteria, with price parameters exceeding the results of an independent assessment,” the release said.

Sanoat Energetika Guruhi (SEG) was awarded the contract after reviewing the proposals received. This took into account "meeting the qualification requirements, the company's extensive experience in the oil and gas industry in the region, the availability of raw materials necessary to maintain the plant, providing the best purchase price in excess of an independent assessment of the enterprise."

Within the framework of SEG, it assumes the performance of investment obligations worth over 380 million dollars for the plant modernization. Also, the company is obliged must set an ecofriendly gasoline and diesel fuel unit at the plant for Euro-5, Jet A-1 jet fuel, increase the production of liquefied natural gas, modernize oil blocks, and increase production capacity to at least 2 million tons .

In addition to investment commitments, the company also assumes the following social commitments:

• not cut jobs and ensure the employment of personnel for two years;
• not reduce salaries of employees as of the closing date of the transaction;
• ensure the preservation of the main terms of the collective agreement;
• the maximum possible preservation of other social obligations.