/IRBIS, 23.03.00/ - REUTERS has informed today with the reference to a source from JSC SHNOS (Shymkent, Kazakhstan) that the affiliated enterprise of the Canadian Oil Company Hurricane Hydrocarbons Ltd (HHL) - JSC Hurricane Kumkol' Munai is going to redeem the share of JSC KAZKOMMERTSBANK (Almaty, Kazakhstan) in the SHNOS Refining.

SHNOS will be sold for 33% of the shares of Hurricane Hydrocarbons plus $51 million, - the source from Shymkent has told by telephone to the REUTERS correspondent. The given deals is a result of negotiations between Hurricane and SHNOS, which have begun in 1999.

Public Relations Department of the Hurricane Kumkol' Munaj has affirmed the information. According to it, a signing of the agreement concerning selling of 100% of the SHNOS share is expected on March 31 in London.

The Kazakhstan Stock Exchange (KASE) has notified recently that according to the Arthur Andersen (Almaty, Kazakhstan) auditor concluding on the SHNOS 1999 financial reporting on October 09, 1999 SHNOS and HHL have reached the amalgamation agreement. According to the agreement, HHL, which affiliated company Hurricane Kumkol' Munai is the principal SHNOS supplier, will receive about 84% of the SHNOS shares for $57.0 million and 30% of the shares issued by HHL. According to the auditor concluding, HHL is now under the bankruptcy and re-structuring process and the Canadian court security. The completion of an amalgamation depends on the successful completion of this process, in the addition to other questions defined by the agreement. The agreement will be canceled on March 31, 2000, if all terms and conditions will not be resolved".

Today's information allows believing that the above-mentioned terms are resolved positively, and the amalgamation conditions are updated a little. The information concerning the deals has also been given by PRIME TASS. As the source the Agency has stated the Vice-president of Board of SHNOS Viktor Pak. As well as the KASE message (and as against the REUTERS information), PRIME TASS information has told that the Refinery's shares will be bought not by an affiliated Hurricane Kumkol' Munai Company, but by the Canadian Hurricane Hydrocarbons itself.

Viktor Pak did not answer, is the deal favorable for Kazakhstan or not explaining that the technical questions will be solved after signing. According to him, the HHL management has promised do not reduce the staff.