PetroChina offered for PetroKazakhstan $3.2 bn., ONGC - $3.6 bn.

/INTERFAX-ANI, Hong Kong, August 16, 05/ - Chinese oil corporation PetroChina, subsidiary enterprise of CNPC, offered to pay for Canadian PetroKazakhstan, whose assets are in Kazakhstan, $3.2 bn., whereas joint offer of Indian ONGC and Mittal Steel owner multi-millionaire Lakshmi Mittal equaled to $3.6 bn. The New York Times writes this with reference to the source, close to negotiations. PetroKazakhstan earlier confirmed fact of receiving applications, however refused to name the company or person, who have submitted them, informing, that it will be announced after completion of negotiating process with interested parties. The newspaper writes, as recent purchasing process of American corporation Unocal showed, the highest offer according to price of purchase not always means victory in such politicized sector, as energy. As it was informed, American Chevron offered for Unocal nearly $16.5 bn., while Chinese CNOOC - $18.5 bn. As a result due to opposition from American legislators CNOOC refused from purchase, but Chevron purchased assets for $17.1 bn. CNPC has oil assets in Kazakhstan. Meanwhile PetroKazakhstan was involved in conflict with Kazakhstan government, particularly, on the matter of natural gas burning. In the opinion of The New York Times, this conflict may be solved in case of alliance with Chinese companies. But if buyer is Indian company, it may face big difficulties in oil transportation from Kazakhstan, which does not have border with India, American edition notes. Experts of oil market consider that Indian buyer may need transport oil through Russia, what may increase Kazakhstan dependence from Russia. PetroKazakhstan Inc., whose head office is situated in Canada, is integrated international energy company, engaged in the exploration, production and export of crude oil, and also refining of oil and the sale of oil products. The company develops Kumkol group of fields on the south of Kazakhstan, owns one of the three petroleum refineries of the republic - Shymkentski (also on the south). [2005-08-16]