Selected Project / Petrochemicals Kingisepp, Leningrad Region
Baltic Chemical Complex
Legal and commercial support on the EPC project for the construction of a polyethylene production complex with planned capacity of up to 3 million tonnes per year. The project value exceeds EUR 11 billion and forms part of the large-scale gas chemical development programme in Ust-Luga.
Project competencies
- Analysis of the project’s contractual structure, the parties’ roles and areas of responsibility, allocation of project risks including technical risks, and preparation of a legal, commercial, financial and technical risk matrix together with the client’s project team.
- Preparation of the EPC contract under English law together with supplemental agreements, appendices and regulations, including financial, commercial and technical terms, taking into account the bankability criteria required by project lenders.
- Negotiation of the EPC terms with the Chinese contractor China National Chemical Engineering Construction Company No. 7 Ltd.
- Preparation of and amendments to English-law licence agreements with Axens, Univation, McDermott and KBR, as well as participation in negotiations with the licensors.
- Negotiation of EPC terms with VEB.RF as lender, Clifford Chance as lender’s counsel, KBR as technical consultant, Marsh and Willis as insurance advisers and the client’s internal teams.
- Review and revision of technical appendices, including coordination with the client’s technical specialists.
- Preparation of finance and security documentation under English law, including suretyship agreements, bank guarantees and a deed of parent company guarantee.
- Advising on the performance of the EPC contract and related supplemental agreements, including matters of contract law, corporate law, intellectual property, insurance, liability, environmental matters, real estate and land relations under the laws of Russia and of England and Wales, with legal opinions on issues arising in the implementation of the project.
- Participation in the negotiation of finance documentation with project lenders and the client’s internal finance teams.
- Liaison with export credit agencies in arranging foreign funding, as well as preparation and negotiation of the form of direct agreement with the lender and the ECA under English law.
- Preparation and negotiation of construction all risks insurance (CAR), cargo insurance and contractor professional indemnity insurance with the insurance broker and project participants.
- Preparation of petitions to the Council of the European Union seeking sanctions relief for project participants and their exclusion from the scope of Council Regulation (EU) 833/2014, as well as preparation of an appeal to BIS (The Bureau of Industry and Security, USA) for the issuance of an export licence for equipment.
- Support in claim procedures.
