CITIC (CPR) buys the oil field in Kazakhstan for $1.9 bn.

/REUTERS, Singapore, October 26, 06/ - Chinese state investment corporation CITIC Group made one more step in the rush of Peking for foreign oil assets, agreed to buy for $1.9 bn. the field in Kazakhstan, which belongs to Nations Energy Co Ltd. About deal - which according to Kazakhstan legislation is have to receive the approval of official Astana - the sides had informed on Thursday. Except that, the agreement also must be given by shareholders of the company and court of Canadian province Alberta. The main among purchasing assets is the oil and gas field Karazhanbas on the west of Kazakhstan. The every 24-hours' extraction from the field totals 50.000 barrels, and the proved resources of hydrocarbons are estimated at more then 340m. barrels. "This acquisition can let CITIC to create the reliable base for developing the strategy for widening its energy business abroad", - announced Chzan Tzitzin, the head of CITIC Group. The registered in Canada Канаде Nations Energy belongs to Indonesian investors. Nations had negotiated with CITIC since June, but in July the deal appeared under threat because of anxiety of Kazakhstan side about increasing volumes of investments from China. In Kazakhstan bordered with CPR already is working the most large Chinese oil company China National Petroleum Corp (CNPC), which is exporting the Kazakh oil to north-west of China, second in the world consumer of "black gold". Last year CNPC had bought the oil-extracting in Kazakhstan and registered in Canada company PetroKazakhstan, offered $4.2 bn. China needs the energy resources very much, so yet is forced to import half of oil, necessary for its economics. Earlier the sources had informed that CITIC for conducting the deal can enlist the support of some Indian partner, among which were named the state company Oil and Natural Gas Corp Ltd and Mittal Steel. However in the announcement made on Thursday, none of the companies were mentioned. CITIC informed that it is exploring the perspectives of building the middle size oil-processing plant in Mangistau region, where Karazhanbas is situated and is searching for the partner for this project. The participation of such partner in face of Kazakhstan state oil and gas company Kazmunaygas was the condition of Kazakhstan, which it had laid down to CNPC for purchasing of PetroKazakhstan. The field Karazhanbas was discovered in 1970-ies but the level of extraction was low till Nations Energy purchased it in year 1997. For six year it had increased the extraction from 5.000 barrels to 41.000 barrels for 24 hours. Analysts call the price of purchase - $5.59 per barrel of proved resources - relatively low. Last year CNPC had paid for purchasing PetroKazakhstan about $7.6 per barrel. However they also point on the high density of oil, extracting on the field, which embarrasses its transportation and decreases the value for buyer. [2006-10-26]