China will purchase 50% share of MangistauMunaiGas (MMG) and insignificantly increase its interest in oil production on the territory of Kazakhstan to 22%, financial investment journal “LS-Личный счет” (LS-personal account) reported with reference to the government”s data.
Companies with China”s participation has produced 19.7 million tons of oil in Kazakhstan in 2008, China”s share comprised 13.6 million tons, or 19.3% of total oil production in the country – 70.6 million tons.
MMG plans to produce 5.5 million tons of oil out of 75 million tons of total oil production, expected by the Ministry of Energy and Mineral resources.
Chinese companies owned shares in 14 oil producing companies prior to announcement about 50% share acquisition in MMG.
It is expected that China”s share in oil production in Kazakhstan will start sharply decreasing starting with 2014 after Kashagan oil field development begins. The field is situated in the northern part of the Caspian sea close to the Kazakhstan city of Atyrau.
The Ministry of Energy and Mineral resources forecasts hydrocarbon production up to 82 million tons in 2013.
National holding KazMunaiGas (KMG) announced in April it is purchasing with CNPC shares in MMG from the Indonesian Central Asia Petroleum. CNPC will loan KMG with US$5 billion, part of the sum will be used for 50% share acquisition at MMG, another part will be used for financing construction of the gas pipeline Beyneu-Bozoy-Akbulak.
50% acquisition will cost CNPC US1.4 billion, KMG does not reveal the amount it will pay.
