Gazprom Neft to wait for completing of KazMunaiGaz transactions to acquire 51 % shares of MANGISTAUMUNAIGAZ

/INTERFAX-KAZAKHSTAN, Almaty, July 11, 08/ - Gazprom Neft OJSC "is waiting for Kazakhstan's national oil and gas company KazMunaiGaz to complete transaction on acquiring 51 % shares of MANGISTAUMUNAIGAZ (MMG). "We have an interest in this asset. We are waiting for KazMunaiGaz to complete the process of acquiring its shares. If the State (Kazakhstan - IF-K) will give good so we have been the second partner, then naturally, the issue will be studied. We haven't yet negotiated details" - the deputy of general director of Gazprom Neft on exploration and production Boris Zilbermints said to journalists in Almaty. "The company exhibited for sale. 51 % shares will have KazMunaiGaz. We would like to claim the remaining 49 %, not sharing with anyone. We believe that we can bring a lot in this deal" - he underscored. "Probably there are a lot persons interested in MMG as an asset is the big one and the last left in the country. But foreign investors, local cannot resolve the issue with loading (Pavlodar OPP, controlled by MMG - IF-K) so as the plant depends on Western-Siberian oil. We can solve this issue. Then Pavlodar plant wouldn't "burn with fever" there would be permanent and increasing deliveries to the plant. We can guarantee this" - B. Zilbermints said. At that, he informed that he wasn't aware of other aspirants for the remaining stake of MMG shares. B. Zilbermints also didn't call the sum, which Gazprom Neft is prepared to pay for this block. He noted, however, that this will be borrowed and the company's shareholders equity. "If you go to the country, it is interesting to go with something big. Although, now on the market there are many supplies of small companies of Kazakhstan" - B. Zilbermints added. Earlier, the head of Gazprom Neft Alexander Dyukov reported that the company is ready to purchase less than 49 % of MANGISTAUMUNAIGAZ with the possibility of placing the Kazakhstan companies` stocks to its balance. He also stressed that Gazprom Neft is not prepared to take this asset at any price. President of KazMunaiGaz Serik Burkitbaev informed last Saturday that National Company plans to complete the deal of acquiring 51 % shares of MMG in the next two weeks. MMG is one of the major oil producing companies in Kazakhstan. It was founded in 1995. MMG owns 36 oil and gas deposits, 15 of which are under development. The largest reserves deposits - are Kalamkas and Zhetybai. MANGISTAUMUNAIGAZ JSC also owns 58 % stake in Pavlodar oil processing plant (Pavlodar oblast, Northern Kazakhstan). In December 2007 owner of MANGISTAUMUNAIGAZ Central Asia Petroleum Ltd has signed with KazMunaiGaz protocol on the sale of that asset. The stake, which can be sold to KazMunaiGaz have not been reported. Kazakh Company itself said that it is ready to purchase 70 % of MANGISTAUMUNAIGAZ. In early June, Prime Minister of republic Karim Masimov ordered to accelerate redemption of MANGISTAUMUNAIGAZ`s shares in state property. Prime Minister affirmed the need to repurchase not less than 51 % shares of the company. KazMunaiGaz - is the national operator on exploration, production, processing and transporting of hydrocarbons, which presents interests of the government in oil and gas industry of Kazakhstan. Kazakhstan holding on managing state assets Samruk JSC owns 100 % shares of the company [2008-08-11]