/INTERFAX-KAZAKHSTAN, Astana, November 17, 06/ - The national oil and gas company of Kazakhstan KazMunayGas nailed a bargain on acquisition of 50% of shares of Shymkent oil refinery (in the South Kazakhstan region).

"On November 16, 2006 National company KazMunayGas JSC signed with CNPC International, which is the daughter organization of Chinese national oil company, a package agreement of purchase and sale of shares (Umbrella and Shear Purchase Agreement) and an agreement of shareholders (Shareholders Agreement)," is indicated in company's message.

According to the message, these agreements determine acquisition terms by KazMunayGas of 50% of shares in Valsera Holding BV, which is the associated company of PetroKazakhstan Oil Products LLP (Shymkent oil refinery), and also terms of conduct of joint business.

Documents fix agreements, reached by parties earlier, at the purchase by KazMunayGas of 33% in the company PetroKazakhstan Inc, is noted in the message.

PetroKazakhstan Inc, which is occupied with exploration, production and processing of oil in Kazakhstan, belongs to CNPC International.

"Acquizition by KazMunayGas by means of Trade house KazMunayGas JSC of the market share in the authorized capital in PetroKazakhstan Oil Products LLP will serve as the providing of energy safety in the south region of Kazakhstan, will allow to increase the state assets in the oil and gas sector. Through the national company the government gets the control over the Shymkent oil refinery, which has the strategic importance for the country, and a big influence upon the domestic market of oil products," is stressed in the message.

As is known, in summer of current year KazMunayGas legally nailed a bargain on acquisition from CNPC of 33% of shares of PetroKazakhstan and establishment of JV on the basis of Shymkent oil refinery.

At that time, parties signed two documents: agreement on acquisition of 33% of share and the agreement of shareholders.

"These agreements determine acquisition terms of 33% of shares in PetroKazakhstan Inc. (PKI) and 50% of shares in Valsera Holding BV, which is the associated company of PetroKazakhstan Oil Products, and also terms of conduct of a joint business," was indicated in the message.

Primary shares of PetroKazakhstan are Shymkent oil refinery (South Kazakhstan region) and Kumkol group of fields (Kyzylorda region, in the south of the republic).

From October 2005 PetroKazakhstan completely belongs to CNPC International, which purchased all shares of PetroKazakhstan for $4.18 bn. from Canadian owners of the company.

Afterwards, CNPC and KazMunayGas agreed that the Kazakhstan company will get 33% of shares of PetroKazakhstan in its ownership, and also the right of unified control over the Shymkent oil refinery and the right to sell oil products on parity terms.

[2006-11-17]