Kazakhstan, Astana, July 2 / Trend D.Mukhtarov /
Kazakhstan intends to use the priority right to acquire the share of ConocoPhillips in the project of development of Kashagan field, the report of the Ministry of Oil and Gas of Kazakhstan said on Tuesday.
According to the report, the Ministry sent an appropriate notification of the government of Kazakhstan to the American company on intention to use the priority right provided for by the Law of Kazakhstan "On Subsoil and Subsoil Use" and to acquire the Interest of ConocoPhillips in North Caspian Sea Production Sharing Agreement at a rate of 8.4 percent.
According to the report, the purchase of ConocoPhillips stake in the North Caspian project will be carried out on behalf of the state by JSC NC KazMunaiGas (KMG).
"JSC NC KazMunaiGas starts the registration of all the necessary procedures," the statement said.
This was earlier officially reported by the head of KMG Lyazzat Kiinov in an interview with Reuters. According to him, the Chinese company CNPC will buy a stake in Kazakh Kashagan oil field on the Caspian shelf by paying over $5 billion for it.
KazMunaiGas will act as a seller of the package, while the KMG itself will receive a package of another participant - ConocoPhillips, which will quit from the project.
Kashagan is a large oil and gas field in Kazakhstan, located in the north of the Caspian Sea. Its geological reserves are estimated at 4.8 billion tons of oil and its common oil reserves amount to 38 billion barrels, or six billion tons, and the recoverable reserves out of these amount to about 10 billion barrels. Kashagan also has large reserves of natural gas - more than one trillion cubic meters.