Kazakhstan sold 5% share in Tengizchevroil to Chevron /extended version 1/

/IRBIS, May 17, 00 / - According to Almaty office of REUTERS, Kazakhstan has sold to Chevron its 5% share in Tengizchevroil (TCHO), one of the most successful joint-stock companies in the country with foreign participation. However, the government still has its 20% of blocking share holding. There were no information on reasons government had selling its stake. Government source claims that official announcement has to be expected at the second half of the day. The government affirms that economic growth is observed in Kazakhstan. GDP growth in the 1 quarter was 9.1% in comparison to the same period of 1999. Trade balance in January-March was positive and increased to $1.03 bln from $62.2 mln in corresponding period. The main advocate of state share selling is Nurlan Balgimbayev, the chief of Kazakhoil and former prime-minister of Kazakhstan. One top-level official from the government said in his phone interview to REUTERS: "Nurlan Utebovich wanted to sell and so it was sold." He evaded a question on reasons of the selling of Kazakhstan's holding in profitable oil project. The vice-chairman of Chevron Overseas Petroleum, Richard Manke met with Nursultan Nazarbayev, the president of Kazakhstan at April 26, 2000. Tengizchevroil is one of the successful oil projects in Kazakhstan. It develops one of the largest oil fields on the west shore of Caspian sea - Tengiz. In 1999, the company increased oil production to 9.6 mln tons from 8.3 mln tons. In year 2000, TCHO intends to increase production to 12 mln tons. Recoverable oil resources of Tengiz field estimated to be from 6 to 9 bln barrels of oil. According to the prime-minister of Kazakhstan, TCHO will pay $360 mln in dividends in 2000. Details of the sale are not known yet. Government sources say that $450 mln is not final sum for 5% stake in TCHO. It also supposed that part of the funds will be directed to the development of new Kazakh capital - Astana. "The settlements will be negotiated under complicated scheme. This sum ($450 mln) plus all payments, Kazakhstan is supposed to receive from company by year 2002, and also funds that could be directed on the development of Astana," said one source in the government. According to this source, distribution of stakes in TCHO by now is following: Chevron - 50%, Mobile - 25%, Kazakhoil - 20% and LukArco - 5%.