Kazakhs may buy BG Kashagan stake for $1 billion
21.06.04 20:37
/REUTERS, Astana, Raushan Nurshayeva, June 21, 04/ - Kazakhstan may
buy BG's 16.67 percent stake in the consortium developing the Kashagan
oilfield in the Caspian Sea for $1 billion by the end of this year, the
country's energy minister told Reuters on Monday.
Vladimir Shkolnik said that to fund the purchase the Central Asian state's
government might borrow on the international financial markets, from
development banks, or from other banks.
"We are obliged to sign (the purchase contract) this year," Shkolnik said.
"The talk is about the order of 10 to the power of nine in dollar terms... that
means the order of $1 billion."
"The project is very good, and the situation on the international financial
markets is favourable (for borrowing)," he later added.
The minister said that this approximate price of $1 billion was "a market-
defined one" and agreed previously by BG with the other consortium
participants.
The other partners of the 40-year North Caspian Sea Production Sharing
Agreement include project operator ENI, ExxonMobil, Total and Royal
Dutch/Shell with 16.67 percent each, as well as ConocoPhillips and Inpex
with 8.33 percent each.
[2004-06-21]