The National Company KazMunaiGaz JSC abandons JV with Gazpromneft on MANGISTAUMUNAIGAZ JSC (Kazakhstan)

/REUTERS, Almaty, Maria Gordeeva, October 7, 08, IRBIS/ - Kazakhstan State Company KazMunaiGaz abandoned from joint venture with Russian Gazpromneft on assets base of MANGISTAUMUNAIGAZ, preferring domestic partners, the source, close to negotiations informed Reuters. At the beginning of June, the Prime-Minister of Kazakhstan Karim Masimov demanded to conduct redemption "in short-term prospect" 51 % of the last major private oil and gas asset in the country - MANGISTAUMUNAIGAZ, the major owner of which is Indonesian Central Asia Petroleum Ltd. According to Kazakhstan Legislation, KazMunaiGaz as the state company has priority purchase right for oil assets on the territory of the country. "Daughter" of gas giant Gasprom, Gazpromneft planed to purchase the remaining 49 % of the company, explored reserves of which make 812 m. metric tones, including 194 m. tones of extracted reserves. However, their major asset is 58 % of one of three OPP in Kazakhstan - Pavlodar petroleum chemical plant. "Gazpromneft was rejected in purchasing stake in MANGISTAUMUNAIGAZ at the beginning of September during (the head of the company) Alexander Dyukov`s visit. MANGISTAUMUNAIGAZ will be divided between Kazakh companies" - the sources said to Reuters. On September Dyukov met with Masimov and discussed possibility of "joint projects realization on geological prospecting and exploration" of deposits in RF and Kazakhstan. Parties planed in nearest time to sign master working agreement and decide on definite projects. At the beginning of July, KazMunaiGaz announced that it gained control in MANGISTAUMUNAIGAZ. However, the head of the state company Kaigreldy Kabyldin informed Reuters on Tuesday that commercial negotiations with owner are just started. "The deal hasn't been concluded yet" - he said in the lobby of oil and gas conference KIOGE-2008. The representative of Gazpromneft refused to comment. [2008-10-07]