Joint announcement of KazMunaiGas and CNPCInternational about participation of Kazakhstan national company in acquiring shares of PetroKazakhstan is published in official press

/INTERFAX-KAZAKHSTAN, October 19, 05/ - National oil and gas company of Kazakhstan KazMunaiGas and Chinese oil CNPC International on Wednesday published in Kazakhstan official press joint announcement regarding participation of Kazakhstan national company in acquiring of shares of Canadian PetroKazakhstan. "Within further collaboration between Kazakhstan and Chinese national oil company KazMunaiGas and CNPC International on October 15, 2005 signed memorandum about mutual understanding, regulating questions of participation of KazMunaiGas in acquiring of shares of the company PetroKazakhstan", - announcement notes. According to memorandum, KazMunaiGas will get in property block of shares of PetroKazakhstan, necessary for keeping strategic control of Kazakhstan over activity of entrails users, and also right of joint management of Shymkent petroleum refinery and right to sell oil products on parity terms with equal stakes from each party. Joint announcement stresses, that parties "note with satisfaction, that direct participation of national companies of two countries in joint project will allow on parity basis to build partner interrelations, will create conditions for providing long term stable oil and oil products supplies to internal market of Kazakhstan". "Signing of memorandum means further strengthening of friendly relations of collaboration between OC KazMunaiGas JSC and CNPC", - announcements notes. About conclusion of this memorandum the day before agency Interfax- Kazakhstan was informed by official representative of KazMunaiGas. Earlier press informed, that CNPC last Saturday signed binding agreement about sale of 33% shares of PetroKazakhstan Inc. to KazMunaiGas. Almost the same agency Interfax-Kazakhstan the day before was informed by knowledgeable source in diplomatic circles, informed about details of the above deal. According to mass media information, besides sale of one third shares of PetroKazakhstan to national company of Kazakhstan, estimated in $1.4 bn., CNPC agreed to create with KazMunaiGas on parity basis joint enterprise on the base of Shymkent PR (included in structure of PetroKazakhstan). According to available information, consultant of CNPC in the deal was Citigroup Inc, PetroKazakhstan was serviced by Goldman Sachs Group Inc, and advisors of KazMunaiGas were Credit Suisse First Boston and ABN Amro. PetroKazakhstan in the middle of August 2005 announced about conclusion of an agreement with CNPC International Ltd. ("daughter" of CNPC) a bout acquiring of shares of Canadian company at price $55 per1 security. Amount of the deal is estimated in $4.18 bn. agreement was approved by the Boards of directors of PetroKazakhstan and CNPC. Last Tuesday shareholders of PetroKazakhstan in prescheduled meeting approved offer of CNPC about acquiring of 100% shares of PetroKazakhstan for $4.18 bn. Meanwhile court of Canadian province Albert stopped the deal on sale of shares of Canadian PetroKazakhstan, working in Kazakhstan, to Chinese CNPC. This deal is delayed, as minimum, till October 26 of the current year. This decision Royal court of Albert pronounced on suit of Russian company LUKOIL. PetroKazakhstan Inc., whose head office is in Canada, is integrated international energy company, is engaged in exploration, production and export of oil, and also processing of oil and sale of oil products. Main assets of PetroKazakhstan are Shymkent PR (South-Kazakhstan oblast) and Kumkol group of fields (Kyzylorda oblast, on the south of the republic). [2005-10-19]