KazMunaiGaz prefers CNPC while choosing co-owner of Mangistaumunaigaz

/INTERFAX-KAZAKHSTAN, Astana, March 13, 09/ - Chinese oil and gas company CNPC is the main challenger for 48 % stake acquisition of Mangistaumunaigaz JSC (MMG), the source in national oil and gas company KazMunaiGaz (KMG) informed Interfax-Kazakhstan. "The remainder 48 % will be probably sold to Chinese oil and gas company CNPC, as it has money", - said the source. At that, CNPC can help KMG to acquire its stake. "Due to this, the scheme, which was used while purchasing stake in Karazhanbasmunai JSC (Chinese side provided loan on non regress base for KazMunaiGaz -IF-K) is considered", - he explained. As informed, in January, 2009 KazMunaiGaz and Central Asia Petroleum Ltd signed contract on acquisition 50 %+2 of voting shares of Mangistaumunaigaz. The deal is planed to be closed till the end of March 2009 after corresponding approvals of the state Agency of Kazakhstan on competition protection, European Commission and following the early reached agreements. In this regards, the source informed that approvals have not been received yet. As informed, MMG acquisition is planned to make at the expense of company's own capital. At the same time, subsidiary of KazMunaiGaz - Exploration Production KazMunaiGaz is negotiating with Mother Company on acquiring this stake. Earlier, Russian Gazprom-neft wanted to buy this share, but Kazakhstan party refused. Later, Indian ONGC became the challenger for MMG stake. KazMunaiGaz - is Kazakhstan national operator on exploration, production, processing and transporting of hydrocarbons, presenting the interests of the Government in oil and gas field of Kazakhstan. National Welfare Fund Samruk-Kazyna owns its 100 % stake. Central Asia Petroleum Ltd - is the company, registered at British Virgin Islands and the owner of 100 % voting shares of Mangistaumunaigaz. MMG is one of the largest oil producing companies in Kazakhstan. The company owns 36 oil and gas deposits, 15 of which are in developing. Kalamkas and Zhetybai are the largest reserves deposits. Beginning June 1996 the company was granted 25 years license of Kazakhstan Government for hydrocarbon production at oil and gas deposits: Asar, Burmasha, Kalamkas, Zhetybai Vostochniy, oil deposits: Alatobe and Karagie Severnoe, oil gas and condensate deposit Zhetybai, oil and gas deposit Oymasha; and in November 1996 - license for oil production at oil gas and condensate deposit Zhetybai Yuzhniy. MMG also owns 58% shares of Pavlodar petrochemical plant. [2009-03-13]