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CNPC buys into USD 5bn Kazakhstan oil and gas field

09th September 2013

Chinese energy firm agrees to purchase an 8.33 per cent stake in the Kashagan field

The Kashagan oil and gas field
The Kashagan oil and gas field has geological oil reserves of 4.8 billion tonnes

Chinese energy firm CNPC has signed a USD 5bn deal with Kazakhstan national oil and gas company KazMunaiGaz (KMG) to acquire ConocoPhillips’ 8.33 stake in the Kashagan oil and gas field on the Caspian shelf.

 

The Kashagan oil and gas field is one of the largest fields in the world. It has geological oil reserves of 4.8 billion tonnes, 38 billion barrels of oil – with 10 billion recoverable – and over a trillion cubic meters of natural gas.

 

In November 2012, India’s state owned ONGC agreed a deal for the same price with ConcoPhillips. In July, CNPC managed to get ONGC out of the deal with the government using a pre-emption right to stop the sale with the intention of selling it to CNPC later.

 

China has been under pressure to meet its energy demands through the acquisition of overseas energy assets. CNPC in particular have been looking into natural gas deals with Gazprom and French company GDF Suez.

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