07.09 CNPC Clinches Deal for $5 Bln Stake in Kazakhstan Caspian Field
ASTANA, September 7 (RIA Novosti) Chinas CNPC has signed a deal with Kazakhstans Kazmunaigaz (KMG) to purchase an 8.33 percent stake worth $5 billion in the Kashagan oil and gas field on the Caspian shelf, the head of KMG said Saturday.
After completing all the procedures, the Chinese side has become an 8.33 percent shareholder, KMGs head Sauat Mynbayev said after a signing ceremony. The value of the deal is around $5 billion, but in addition to the sales price there are a range of conditions, namely the Chinese will finance a share in KMG for second-phase investment. Lets say, the first part of the second phase this is around $3 billion only on the part of KMG, the total amount is around six times more, he added.
KMG now has a 16.8 percent share in Kashagan, he said. This is half the investment KMG is obliged to finance in accordance with its share obligations. In addition, a pipe works will be built, as well as an industrial complex for oil equipment in Aktau, and some social facilities in Astana, Mynbaev added.
