Kazakhstan. Astana, 8 May / Trend D.Mukhtarov /
Kazakhstan is more inclined to sell ConocoPhillips share in the North Caspian project (Kashagan field) to China rather than to India, a Russian expert and analyst of the 'Oil and Gas of Russia' journal Igor Ivachnenko specialising in oil and gas projects in Central Asia said.
According to him, against the background of an oil price reduction, Kazakhstan will soon need loans which Beijing will be able to provide, as before."
"India has not given Kazakhstan anything substantial and is unlikely to in the future, so Beijing has more chances for this purchase than Delhi," he said.
The expert noted that Astana is interested in exporting gas to China which also increases the 'sensitivity' of Kazakhstan to the cooperation with China.
As reported before, the Minister of Oil and Gas of KAzkahstan Sauat Mynbayev had confirmed to reporters that China is interested in purchasing ConocoPhillips share in the Kashagan project on the Caspian shelf.
"Kazakhstan has not taken such a decision, but the possibility exists," Mynbaev said. "China of course, is demonstrating its interest and we are trying to define our position.
"For a long time China didn't get the full planned volumes of oil that were supposed to be transported to China and it tries to somehow increase these volumes, maybe at the expense of the acquisition of a share in Kashagan," Mynbaev added.
At the same time, he stressed that Kazakhstan has a lot of counter conditions.
Mynbaev refused to specify who exactly in China is interested in acquiring a share in Kashagan, noting that "no negotiations are being held with anyone."
Moreover, recently the head of JSC National Company KazMunaiGas, Lazzat Kiinov said speaking at a briefing in Astana, that the company is not going to buy out the share of ConocoPhillips in the North Caspian project.
"We already have a sufficient share of 16.8 per cent. We do not want to be a major shareholder in the project," Kiinov said.
The head of KazMunaiGas also confirmed the words of the Minister of Oil and Gas of the Republic of Kazakhstan Sauat Mynbaev that a Chinese company is showing interest in joining the project.
"All the questions about who will acquire ConocoPhillips' share are being studied," Kiinov added.
In November, last year, ConocoPhillips announced its intention to sell its share in Kazakhstan's 'Kashagan' field development project to the unit of Indian state oil company ONGC, responsible for international projects, ONGC Videsh Limited
The transaction is expected to close in the first half of 2013. According to the legislation of Kazakhstan, the contract has to be approved by the government of the country, and Kazakhstan has the priority right to acquire the share of ConocoPhillips in the project.
Kashagan is one of the largest fields in the north of the Caspian Sea with estimated geological oil reserves of 4.8 billion tons. Its total oil reserves are 38 billion barrels (6 billion tons), with a recoverable volume of about 10 billion barrels. Natural gas reserves are estimated at over 1 trillion cubic meters.