Azernews.Az

Kazakhstan's state oil and gas company KazMunaiGas does not exclude possible borrowing in foreign markets to purchase the share of ConocoPhilips in the Kashagan project, Managing Director of Samruk-Kazyna National Welfare Fund, Malik Salimgereev, said at a news conference on Tuesday, Trend news agency reported.

He said ConocoPhilips made an official statement on sale of its 8.4 - percent share in the project in late November. According to the procedure, the shareholders of the Kashagan consortium have two months to purchase that share.

"KazMunaiGas, which is included in the consortium, and other shareholders are currently considering this issue," Salimgereev said.

He said distribution of ConocoPhilips's share among shareholders in equal parts is also possible.

"In the case of a positive decision, if necessary, we can take loan in foreign markets to buy this share," Salimgereev said.

ConocoPhillips previously announced its intention to sell its stake in the Kashagan field development project to a unit of the Indian state oil company ONGC, responsible for international projects of ONGC Videsh Limited. In turn, Minister of Oil and Gas of Kazakhstan Sauat Mynbayev told reporters that Kazakhstan and other shareholders have the priority right to purchase shares of ConocoPhillips in the project.

Kashagan is one of the largest fields discovered in the past 40 years. Kazakh geologists estimate geological oil reserves of 4.8 billion tons. According to the project operator, total oil reserves are 38 billion barrels (six billion tons), with a recoverable volume of about 10 billion barrels. Natural gas reserves are estimated at over one trillion cubic meters.

The companies developing the project are planning to begin production on Kashagan in the first quarter of 2013.

The Kashagan project participants are Eni, Royal Dutch Shell, Exxon Mobil, Total and KazMunaiGas, which owns equal shares (16.81 per cent), as well as ConocoPhillips - 8.4 per cent and Japan's Inpex - 7.55 per cent.