Monthly Report - February 2015

The agreement required the parties to negotiate and finalize several direct agreements and option agreements, including the FSRU charter direct agreement, individual tailor-made direct agreements, FSRU option agreement, and fixed assets option agreement. WFW, the international legal counsel for Advanced Engineering Associates International, Inc. (AEAI), was engaged to advise various stakeholders in the project, including the Government of Pakistan, on the negotiation and finalization of these agreements. WFW subcontracted Vellani & Vellani Advocates and Legal Consultants (V&V) in Karachi, Pakistan, to resolve questions involving Pakistan law and the Pakistan regulatory regime. During the month of January 2015, WFW made significant progress on the outstanding conditions subsequent under the LSA. The generic direct agreement was finalized between EETPL, SSGC, and the lenders during the Karachi meetings in December 2014. However, the PQA direct agreement required restructuring due to the PQA's refusal to enter into a direct agreement with the lenders. WFW prepared a simplified PQA direct agreement that was commented on by SSGC in the affirmative, but comments from the lenders are still outstanding. The EVTL direct agreement has now been signed by all parties, and the FSRU charter direct agreement, FSRU option agreement, and fixed assets option agreement have also been signed by all parties. However, the requirement for direct agreements for the construction contracts with AUE and CHEC was waived by WFW due to the lenders' agreement that direct agreements were not necessary. The Long-stop Date as defined in the LSA was extended by an extension and amendment agreement on 21 October 2014 and two side letters to it. The Long-stop Date in relation to the transfer of permits to EETPL and in relation to the direct and option agreements was extended to 31 December 2014. In February, two further extension agreements were signed by the parties, extending the Long-stop Date to 31 January 2015 and then to 28 February 2015. The LNG procurement process for the Islamic Republic of Pakistan is a complex and ongoing process that requires the negotiation and finalization of several agreements. WFW's work on this assignment has been ongoing since August 2014, and significant progress has been made in January 2015. However, there are still outstanding issues that need to be addressed, including the comments from the lenders on the PQA direct agreement and the finalization of the direct agreements for the construction contracts with AUE and CHEC. The LNG procurement process is a critical component of the Islamic Republic of Pakistan's energy policy, and the successful completion of this process will have a significant impact on the country's energy security. The work of WFW and AEAI on this assignment is essential to ensuring the successful completion of this process and the achievement of the project's objectives.