Astana, Kazakhstan, Jan. 6
By Daniar Mukhtarov - Trend:
The independent directors at the KazMunaiGas Exploration Production JSC (KMG EP) received a notification from Kazakhstan's national company KazMunaiGaz (KMG) that it is withdrawing its proposal to acquire the KMG EP's shares in free circulation at a price of $18.50 per global depositary receipt (GDR).
The KMG EP said in its message, made public Jan. 6, that since the announcement on July 25, 2014 of KMG's preliminary approach, the independent directors have sought to engage with KMG and its advisers to achieve a satisfactory transaction.
In December 2014, the independent directors of KMG EP indicated to KMG that they would recommend an offer of $18.50 per GDR.
Given the period of time that had elapsed, the independent directors were, however, discussing with KMG the payment and level of a dividend in respect of the year ended Dec. 31, 2014.
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2013 was 12.4 million metric tons of crude oil, including the company's share in Kazgermunai, CCEL and PKI.
The company's total consolidated volume of proved and probable reserves including shares in the associates, as at the end of 2013 was 200 million metric tons (1.5 bn bbl), out of which 148.8 million metric tons (1.1 bn bbl) relates to Ozenmunaigas, Embamunaigas, and UOG (Rozhkovskoye field, Fyodorovskiy block).
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