Kazakhstan not eyes increasing share in Karachaganak project
At present, Kazakhstan is not considering an opportunity of purchasing a share of the British oil and gas company BG Group plc in the Karachaganak project and thereby increasing its stake in the project, the Kazakh energy ministry told Trend.
"As of today, the ministry did not get any appeals from the project participants regarding the alienation of their stakes in Karachaganak and other major projects," the ministry said.
In early April, oil giant Royal Dutch Shell announced about reaching an agreement to purchase a smaller company - BG Group at $70 billion. The sides expect that the transaction will be completed in early 2016.
Later in its report-2014, BG Group stated that in case of a merger with Royal Dutch Shell, it can lose its 29.5 percent stake in Kazakhstan's Karachaganak project because in case of changing control over BG Group, Kazakhstan is entitled to enjoy its priority right to buy the company's share in the project.
In case of change in control over BG Group, Kazakhstan can claim the right to purchase the company’s share in the definitive production sharing agreement that regulates the work at the Karachaganak gas and condensate field, read the British company’s report.
At the same time, the ministry said that under the terms of the definitive production sharing agreement, each contracting company has the right to cede (sell) its share in the project.
In this case, the decision on realizing Kazakhstan’s priority right in line with the existing legislation is adopted on the basis of the recommendations from the interagency commission for realization of state’s priority right, according to the ministry.
Karachaganak field is one of the world's largest fields. Its oil and condensate reserves stand at 1.2 billion tons, and gas reserves exceed 1.35 trillion cubic meters. As of today, almost 45 percent of gas and 16 percent of all liquid hydrocarbons produced in Kazakhstan are being extracted from this field.
Karachaganak is being controlled by a group of investors, which, aside from BG Group, includes Eni (29.25 percent), Chevron (18 percent), Lukoil (13.5 percent) and KazMunaiGas (10 percent).
---
Follow us on Twitter @AzerNewsAz