Baku, Azerbaijan, April 15
By Elena Kosolapova - Trend:
Russian LUKOIL signed an agreement on sale of its 50-percent stake in the Caspian Investment Resources Ltd to China's Sinopec, LUKOIL reported on April 15.
"The total price of the shares for sale will be around $1.2 billion and will be subject to a number of adjustments as of the closing date," the company said.
Caspian Investment Resources Ltd., through a number of joint ventures, owns various stakes in four hydrocarbon-production projects in Kazakhstan. LUKOIL's share in commercial hydrocarbon production as part of the above projects equaled 10.2 million barrels of oil per day in 2013.
"The transaction is meant to optimize LUKOIL's overseas hydrocarbon asset portfolio," the company said.
The transaction closing is subject to a number of conditions, and specifically, the approval by the Kazakh authorities. The complete closing of the transaction is expected before the end of 2014.
At the same time, LUKOIL will continue to participate in Kazakhstan hydrocarbon-production projects, including Kumkol, Karachaganak and Tengiz projects. The company is also a member of the Caspian Pipeline Consortium.
"We carry out our activities in Kazakhstan and are interested in investment accrual there. The company intends to reallocate the investments to geologic exploration projects, including those in the Kazakhstan sector of the Caspian Sea.," LUKOIL President Vagit Alekperov said.
Moreover, LUKOIL plans to announce a tender for development of a lube-production plant construction project near the city of Almaty in April of 2014, according to Alekperov.
LUKOIL optimizes hydrocarbon asset portfolio in Kazakhstan
Russian LUKOIL signed an agreement on sale of its 50-percent stake in the Caspian Investment Resources Ltd to China’s Sinopec