Kazakhstan supported offer of ONGC to acquire PetroKazakhstan - India

/REUTERS, Bombay, July 15, 05/ - Authorities of Kazakhstan supported plans of Indian Oil and Natural Gas Corp. Ltd. (ONGC) to acquire Canadian PetroKazakhstan Inc., informed on Friday high rank representative of ministry of oil production of India. "Government of Kazakhstan is glad to India's offer and assured us in full support", - he said to Reuters on conditions of anonymity. At the end of June government of Kazakhstan announced about its right first to refuse to candidates for purchase of Canadian oil company PetroKazakhstan Inc., all assets of which are in Kazakhstan. Kazakh authorities also will consider opportunity to purchase Canadian firm by the market price in case of receiving such offer from PetroKazakhstan. Analysts and mass media assume, that list of candidates for purchase of PetroKazakhstan will be headed by Chinese and Indian companies, ready to purchase oil assets within the whole world with a view to satisfy energy "hunger" of their rampantly growing economies. India, importing 70% of consumed oil, actively works within the whole world: particularly, ONGC got 25-% stake in Sudan project Greater Nile Project of Canadian Talisman Energy Inc. ONGS earlier informed, that it negotiates with Kazakhstan authorities about participation in development of oil and gas fields of Caspian sea. Average size enterprise PetroKazakhstan (previously called Hurricane Hyrdrocarbons) is at law with Russian LUKOIL regarding their joint enterprise Turgai Petroleum in Kazakhstan. Country's authorities advised PetroKazakhstan to decrease production of oil on two fields, in order to decrease damage to ecology in the result of burning gas torches on wells. Head of the company Bernar Izotye called this demand discriminating, as similar picture we may observe on other fields in Kazakhstan. According to Financial Times, PetroKazakhstan in the first quarter 2005 produced 150.000 barrels a day; its market capitalization is estimated in $2.5 bn. [2005-07-15]