Western companies did not let Chinese CNOOC to come to Kashagan

/REUTERS, London, Hong Kong, May 12, 03/ - Western companies, which develop the giant oil and gas field Kashagan in Kazakhstan sector of Caspian sea, broke plans of Chinese CNOOC, which intended to purchase the half of the stake of British BG in this projects for $615 m. "The decision is consistent with owners' rights, driven by the consideration of self- interest and not that unexpected -- even though we would have liked a different one," said Wei Liucheng, chairman of CNOOC, in a statement. On Friday, according to the data of the source Reuters, companies ENI (project's operator), Royal Dutch/Shell, TotalFina Elf, and ExxonMobil, every of which owns 16.67% in the project, raised their priority rights for the half of the stake of BG, which also owned 16.67%. ConocoPhillips and Impex plan to do the same way. The source in Chinese oil industry said Reuters that selling of the other half of BG's stake, which Chinese Sinopec intended to buy at similar price, would also be blocked by partners, which could realize their rights before May 17. BG declared about selling of its stake to two Chinese companies in March. According to PSA's terms, if one of partners sells his stake it may be bought only partners, who stated about realization of first option. In the opinion of analysts, precisely fears concerning the fact that one of partners can buy the stake at a good price and have an advantage over others, made all participants of PSA declare about their rights, who, in the principle, had no objections about Chinese company's coming. CNOOC, in its turn, promised that the decision would not cause worsening of relations between western companies and its main shareholder - government. "This is not a political decision, but commercial one", - said financial director Mark Tsu. Consortium, which is headed by Agip, occupies itself with development and working out of contract territory at the North Caspian sea, which comprises, in particular, Kashagan field is one of the largest in the world. The consortium intends to start industrial extraction at Kashagan in 2005. Oil extraction at Caspian shelf has been complicated by many factors and demands significant expenses, which BG considered as pointless for it. BG is operator of another big project in Kazakhstan - the British company owns 32.5% in the giant gas condensate field Karachaganak. Besides, BG owns 2% in Caspian pipeline consortium, which has built oil pipeline from Kazakhstan to Russian coast of the Black sea. [2003-05-12]