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Kazakhstan completes deal on 10 percent stake acquisition in Karachaganak project

Kazakhstan Materials 28 June 2012 18:05 (UTC +04:00)
Kazakhstan has completed the deal on acquisition of a 10 percent stake in Petroleum Operating consortium (KPO), developing one of the world’s largest gas condensate fields Karachaganak in the West Kazakhstan region
Kazakhstan completes deal on 10 percent stake acquisition in Karachaganak project

Azerbaijan, Baku, Jine 28 / Trend E. Kosolapova/

Kazakhstan has completed the deal on acquisition of a 10 percent stake in Petroleum Operating consortium (KPO), developing one of the world's largest gas condensate fields Karachaganak in the West Kazakhstan region, Novosti-Kazakhstan reported with the reference to one of the project participants Chevron.

"Today Chevron International Petroleum, a subsidiary of Chevron Corporation confirmed completing the agreement signed between companies participating in Karachaganak project and Republic of Kazakhstan from December 14, 2011. Thus, a 10 percent stake in the project was transferred to Kazakhstan," the company said.

Following the agreement, BG Group has 29.25 percent in the project, Eni - 29.25 percent, Chevron -18 percent, Lukoil -13.5 percent and Kazakhstan -10 percent.

Karachaganak with reserves of 1.2 billion tons of oil and condensate and more than 1.35 trillion cubic meters of gas is one of the major oil and gas fields in the world. About 49 percent of Kazakhstan's gas production and 18 percent of oil production are extracted on this field.

Earlier, the field was developed by Consortium Karachaganak Petroleum Operating BV including British BG, Italian Eni, U.S. Chevron and Russian Lukoil. Kazakhstan was not involved in the project.

In December 2011, an agreement was signed to sell 10-percent stake in the consortium to the Kazakhstan's National Oil Company KazMunaiGas. The contractor gave a 5-percent share in the project to the country to regulate disputable issues. The remaining 5 percent was sold for $1 billion without taxes.

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