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China and Kazakhstan to sign “large-scale” energy deals

10th September 2013

Chinese and Kazakh presidents are set to sign oil and gas deals worth billions

Another perspective of the Kashagan oil and gas field
China and Kazakhstan have been working closely in the oil and gas sector.

The nations of China and Kazakhstan are set to sign 22 agreements on Saturday worth a combined USD 30bn, including oil and gas deals, Kazakh president Nursultan Nazarbayev said.

Among the energy deals is the USD 5bn purchase by CNPC of ConocoPhillip’s 8.33 per cent stake in Kazakhstan’s Kashagan oil project, preventing India’s ONGC from completing a deal for the stake.

Nazarbayev said in a briefing after meeting with China's president Xi Jinping: "Among these [agreements] there are large-scale ones, including on cooperation in the oil and gas sector, which are essential for us."

"We have reached an agreement on building a new oil refinery [in Kazakhstan], which we need so much," Nazarbayev added.

A Kazakh official told Reuters the transaction will be finalised by late September or late October.

Reuters also obtained one of the draft agreements which would guarantee loans from The China Development Bank and The Export-Import Bank of China – worth respectively USD 3bn and USD 5bn – to Kazakhstan's state holding Baiterek. This will be used for promoting innovation and industrial projects. 

The two nations have been working closely in the oil and gas sector. PetroChina’s Sichuan refinery in the southwest of the country, when completed in October, will process oil from Kazakhstan as well as from its own northwestern oilfields.

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