Exploration Production KazMunaiGas sells stake in subsidiary
Kazakhstan, Astana, April 19 /Trend D.Mukhtarov/
KazMunaiGas Exploration Production (KMG EP subsidiary of National Oil and Gas Company KazMunaiGas) announced the closing of the transaction to sell a 51 per cent stake in the Kazakhstan Petrochemical Industries Inc. (KPI) of the United Chemical Company, the EP KMG press service said.
KPI operates the construction of the first integrated petrochemical complex in the Atyrau region, to the west of the country. United Chemical Company has managed the KMG EP's stake in the project since 2009. The deal was approved by the KMG EP board of directors on March 2, 2012. The transaction value amounts to 4.86 billion tenge ($33.5 million).
KMG EP will receive a net gain of 4.86 billion tenge as a result of this transaction without entailing tax consequences, as the initial investment was equal to the amount of sale, the statement said.
The sale of the stake in KPI is a part of the company's Strategy 2020, which includes divestment of non-core assets, including those related to petrochemicals.
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2011 was 12.3mt (an average of 250 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The total volume of proved and probable reserves, as at the end of 2011 was 226mt (1.7bn bbl), including shares in the associates of about 2.1 billion barrels.