REC Group will finance the export of oil and gas equipment to Uzbekistan
The REC Group has begun financing the investment program of Uzbek Jizzakh Petroleum to increase oil production. The program involves the purchase of Russian oil production units, oil country tubular goods, and pumping equipment.
EXIMBANK of Russia JSC (part of REC Group) provided factoring financing to RIMERA-ALNAS LLC under the insurance coverage of EXIAR JSC. The deal took place within the framework of the memorandum signed in April between REC JSC and JV JIZZAKH PETROLEUM LLC. Thus, the possibilities of financing the company’s investment program to increase oil production were elaborated. The total funding allocation for the program is estimated at $ 50 million.
The buyer of the Russian equipment is one of the largest oil and gas companies in the Republic of Uzbekistan, JV Jizzakh Petroleum LLC. High-pressure equipment will be used at the company's fields for upwelling.
“This is the first deal within the framework of financing export deliveries of the Rimera Group. We look forward to develop cooperation with exporters and are ready to provide all possible measures to support exports from the REC’ range of services. Moreover, this deal initiated the financing of Jizzakh Petroleum’s program for the intensification of oil production. We are interested in further participation in financing using the instruments of EXIMBANK of Russia JSC and EXIAR JSC,” Maxim Kobin, Vice President of EXIAR JSC and EXIMBANK of Russia JSC.
“Uzbekistan has been traditionally one of the key foreign trade partners for the Rimera Group. Therefore, it is fundamentally important for us to interact with such a significant company as Jizzakh Petroleum. I am sure that the supply of oil production equipment produced by the Alnas plant to Jizzakh Petroleum will contribute to the effective implementation of new large-scale projects of the company aimed at solving strategic problems in the energy sector of Uzbekistan,” Stanislav Veliky, General Director of RIMERA JSC and Managing Director of RIMERA-ALNAS LLC.
“I would like to thank EXIAR JSC, EXIMBANK of Russia JSC and RIMERA-ALNAS LLC on behalf of Jizzakh Petroleum for their contribution to the development of the oil production intensification program and fruitful cooperation! We value our reputation, respect our partners and customers, which allows us to build long-term business relationships,” Shokir Fayzullaev, General Director of Jizzakh Petroleum LLC.
RIMERA-ALNAS LLC is one of the largest enterprises in Russia for the production of submersible equipment for oil production. The plant was founded in 1978 and is located in Almetyevsk, Republic of Tatarstan. Complete installations of electric centrifugal pumps (ESP) of the Alnas plant are successfully operating at the oil fields of the largest companies in Russia, near and far abroad.
JV Jizzakh Petroleum LLC is one of the largest vertically integrated oil and gas companies in the Republic of Uzbekistan, which accounts for about 80% of oil production and about 22% of proven oil reserves at 105 deposits. The Company was established in 2017 in accordance with the Decree of the President of the Republic of Uzbekistan. The company members are Uzbekneftegaz JSC, Gas Project Development Central Asia AG, and Belvor Holdings Limited.