Kazakhs may buy BG Kashagan stake for $1 billion

/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]