Kazakhstan, Astana, August 21 / Trend D. Mukhtarov /
China gives credit loan to Kazakhstan for expenses of JSC NC "KazMunayGas" in project on Kashagan field development, a source on the Kazakhstan oil and gas market told Trend.
"For the expenses of "KazMunayGas" on "Kashagan" ,according to its share in the project, China gives Kazakhstan a loan, but it is not financing', the source underscored.
The scheme of bilateral deal between Kazakhstan and China on share purchase in "Kashagan" will be the following: Kazakhstan purchases the share of ConocoPhillips, then sells half of its package of 16.81 per cent (8.4 per cent) to Chinese company, getting for this the declared value of the package sold, of $5 billion.
According to the source, providing one more loan to the national company by China was one of the defining moments in the decision of the republican government to sell 8.4 per cent in the project on Kashagan field development.
Beijing has more chances than Delhi to enter the North-Caspian Project, a Russian expert on Central Asia, Igor Ivakhnenko told Trend earlier.
According to him, amid fall of oil prices Kazakhstan again will need credits soon, and "Beijing, as before, will be ready to give them".
"Till now India did not give anything significant to Kazakhstan, and unlikely will give, that is why Beijing has more chances on purchase than Delhi", Ivakhnenko said.
On July 2, 2013 Kazakh Oil and Gas Ministry spread the statement, that it informed ConocoPhillips on intention of RK to use its priority right on acquisition of 8.4 per cent share participation of ConocoPhillips in North-Caspian Project (Kashagan field). The state company "KazMunayGas"(KMG) will act as a buyer.
KGM intends firstly to sell part of its share in Kashagan project, which constitutes 16.81 per cent, to Chinese CNPC , and then to purchase ConocoPhillips' package, KMG former head Lezzet Kiinov declared in his interview the day before the official statement, Reuters reported.
Thus, as many experts predicted, China, and not India, will enter Kashagan field development project. One of the biggest Chinese oil companies - CNPC- now will get share, equal to the amount of selling share of ConocoPhillips in North Caspian project ("Kashagan").
The North Caspian Operating Company (NCOC) is the only operator of the North-Caspian project. Its shareholders are Agip Caspian Sea BV (16.81 per cent), KMG Kashagan B.V. (16.81 per cent), ConocoPhillips North Caspian Ltd. (8.4 per cent), ExxonMobil Kazakhstan Inc., (16.81 per cent), Inpex North Caspian Sea Ltd. (7.56 per cent), Shell Kazakhstan Development BV (16.81 per cent) and Total EP Kazakhstan (16.81 per cent).
Recoverable oil reserves of Kashagan are estimated at 11 billion barrels by NCOC, whereas total geological raw material reserves of this oil-bearing structure stand at 35 billion barrels. It is believed that it is the largest oil field in the world after Prudo Bay field in Alaska (opened in 1968).