Kazakhstan receives 10% share in Karachaganak project.

By bne IntelliNews December 15, 2011
The government of Kazakhstan and the operator of the Karachaganak oil and gas project signed the agreement on transferring 10% stake, PM Karim Masimov has announced. The Kazakh side will buy 5% of the project at the market price and will receive the remaining 5% for free. The sum of deal can amount from USD 700mn to USD 1bn. The operators of the Karachaganak field are BG and Eni (32.5% of the project), 20% owned by U.S. company Chevron, 15% belongs to Russian Lukoil. The members of consortium Karachaganak Petroleum Operating BV in proportional terms will sell part of their shares to Kazakhstan that joined the project. The allocations to the budget total 20% of the consortium's profit after taxes payed (2008 - sum was USD 773mn). This is considerably lower than, for example, income received from the Tengiz Chevroil. If KazMunayGas enter as one of the shareholders, the amount received by Kazakhstan will seriously increase, analysts said, but exact figures have not yet been provided. Kazakhstan has put pressure on Karachaganak consortium for few years in order to get a stake in the project. Karachaganak holds 1.2bn tones of oil and gas condensate and over 1.35tcm of gas. It is among top 3 largest oil and gas fields in Kazakhstan, and the only one in which KazMunayGas has no stake.

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