ConocoPhillips completes sale of Kashagan’s interest
Azerbaijan, Baku, Oct. 31 /Trend E. Kosolapova/
The American ConocoPhillips has completed the transaction with Kazakh KazMunaiGas (KMG) for the sale of its 8.4 per cent interest in the North Caspian Sea Production Sharing Agreement (Kashagan) for approximately $5.4 billion, the company reported on Thursday.
ConocoPhillips announced the company's intent to sell its 8.4 per cent interest in Kashagan project to Indian ONGC Videsh Limited in Nov. 2012.
In July 2013, ConocoPhillips said it had received notification from Kazakh Oil and Gas Ministry on the government's intention to use its priority right under the Subsoil Law of Kazakhstan to acquire the company's share in the project. KMG was designated by the ministry as the purchasing entity.
Meanwhile KazMunaiGas signed an agreement with China National Petroleum Company (CNPC) on sale of KMG's 8.3 per cent share in 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.
The total oil reserves amount to 38 billion barrels, while some 10 billion out of them are recoverable reserves. There are large natural gas reserves at the Kashagan field - over one trillion cubic meters. Oil production at Kashagan field was launched in September.