Kashagan and Karachaganak: Chinese scenarios of developments

Kazakhstan has invoked its priority right to buy the ConocoPhillips’ share in the Kashagan field – 8.4%. The American company will sell its share in the largest oil and gas project to KazMunaiGaz for $5 billion. The deal will be concluded in the fourth quarter of 2013, KazTAG transmits.

On the face of it, Chinese CNPC couldn’t effect its long-standing desire – to buy a share in the giant Kashagan. But at the end of June, the news agency Bloomberg reported that CNPC planned to pay about $5 billion for a share in the development of the Kashagan field.

“CNPC plans to pay 8.33% in Kashagan from the national company KazMunaiGas at the price of about $5 billion,” – an informed source reported to the agency.

In turn, KazMunaiGas will maintain its share in Kashagan, because it will buy 8.4% from ConocoPhillips, invoking the preemption right, the source affirmed.

KazMunaiGas will have 16.88% in Kashagan after the conclusion of two transactions, Exxon Mobil Corp., Royal Dutch Shell Plc, Total SA and Eni SpA  each will have 16.81% and Japanese Inpex Corp – 7.56%.