Kazakhstan may buy 10% in Karachaganak project for $1 billion on this week

/IRBIS, December 12, 2011/ - Kazakhstan is preparing to get 10% of the project Karachaganak this week, Reuters reported December 9, citing unnamed sources. As indicated, two sources close to the talks told Reuters on Friday that Kazakhstan will pay $ 1 billion in cash and stop the lawsuits against the operators of the field in exchange for a stake in the consortium led by BG Group (BG.L) and Eni (ENI. MI). "All of the major differences, that have been a bone of contention, will vanish", - told Reuters one of the sources. One of the three sources told Reuters, it is expected that senior officials of the consortium partners will be invited to Astana, no later than December 16. One source said that the signing of the agreement is scheduled for December 14. All sources spoke on condition of anonymity because of the sensitivity of the issue. British BG and Eni of Italy own 32.5% of Karachaganak Petroleum Operating Group. Chevron owns 20% in the group, Lukoil - 15%. Reportedly, two sources told Reuters, that the consortium members will be selling some of their shares on pro rata basis. Theoretically, BG and Eni to cut their shares to 29.25%, Chevron - 18%, Lukoil - 13.5%. BG declined to comment on details or possible terms of agreement. The company said it believed that there is the "right track to achieving beneficial solutions for all sides", but that it did not complete the discussion. Eni, Chevron and LUKOIL also refused to comment. Under the deal, as reported by two sources Reuters, it is assumed that Kazakhstan will pay $ 1 billion for a 5% stake in the consortium. In exchange for the other 5% government will stop some of their lawsuits against the operators, sources said. "Agreement to resolve the dispute proposes removal of mutual claims", - said one source. [2011-12-12]