SEG's official statement regarding media reports about a decrease in gasoline production at the Fergana Oil Refinery Plant

In January-June of this year, the Fergana Oil Refinery Plant produced a total of 95.4 thousand tons of gasoline, of which 9.9 thousand tons of gasoline in June.

The decline in production is not due to a “coincidence with the privatization of the enterprise”, but to the fact that the L35 / 11-300 unit (gasoline production) got up for repairs from June 1 to 15. Unfortunately, over the past 30 years, the plant has not been modernized, many plants are in a state where shutdown and repair cannot be postponed due to a safety factor that our company has no right to neglect.

SEG, as the new owner of the enterprise, intends to raise up to $400 million for modernization purposes. The update will take place in an operating environment, which will also entail shutdowns of various installations in the future. The plant did not know such renovation and investment under the previous owners.

The standard production capacity of the L35/11-300 unit is 20.0-26.0 thousand tons per month. Thus, the Fergana Oil Refinery Plant accounts for slightly more than a quarter (26%) of the volume of motor gasoline, which is produced in general in Uzbekistan.

Today, due to the geopolitical situation in the world and changes in the distribution of resources, as well as due to a sharp increase in prices for hydrocarbon raw materials and oil products, the import of gasoline and diesel fuel by commercial structures has sharply decreased.

Thus, that quarter of the market, which was mentioned above, has turned over the past few months into one sixth, that is, does not exceed 18% of the market.

And if we take into account the fact that in June the unit was under repair, we see a decrease in the market share to 10% of the total gasoline produced in the country.

With such inputs, it is important to say that the work of the Fergana Oil Refinery Plant, of course, affects the pricing of gasoline, but only within the framework of the share in which it is produced by the enterprise. Do not try to overestimate this share. From the point of view of gasoline supplies to the stock exchange, the following should be mentioned.

Fergana Oil Refinery Plant has always complied and continues to comply with all norms of the current legislation. In accordance with it, the entire volume, 100% of the produced gasoline, was put on the stock exchange. Unfortunately, it is likely that journalists sent an initially incorrectly formulated question to the stock exchange regarding the volumes of gasoline offered by Fergana Oil Refinery Plant LLC for auction. Based on this answer, the editors made a false conclusion that part of the gasoline produced by the plant was not supplied through the stock exchange. This is not true. Today Fergana Oil Refinery Plant is a part of SEG. This assumes that gasoline produced at the Fergana Oil Refinery Plant is put up for auction not only from Fergana Oil Refinery Plant LLC, but also through the legal entity Sanoat Energetika guruhi LLC. In June, 100% of the production volume of the Fergana Oil Refinery Plant was put up for auction on the stock exchange from these two companies, regardless of the legal entity that carried out the auction.