Reuters reported that Kazakhstan agreed to buy 10% of the Karachaganak oil and gas field for USD 1 billion and the settlement of disputes with its consortium partners, ensuring the state owns a part of every large energy project on its soil.
Mr Sauat Mynbayev Oil and Gas Minister told reporters that state oil and gas company KazMunaiGas would borrow USD 1 billion over three years from the consortium partners, at a rate of LIBOR plus 3% to pay for the stake.
He said "KMG will service and repay this debt with the cash flow that its 10% stake will generate."
Mr Mynbayev said USD 1 billion would pay for a 5% stake in a project that contributes nearly half of Kazakhstan's gas while the state would secure its other 5% in return for dropping various claims against the consortium.
But the minister added that this stake would be in return for the resolution of all non-tax and non-customs claims by state bodies and raising the likelihood that the state will continue to pursue outstanding tax claims against the project.
A more assertive Kazakhstan, home to 3% of the world recoverable oil reserves and the largest economy in Central Asia has sought in recent years to revise deals struck with foreign energy companies in the lean post-Soviet years.
After securing and then doubling its stake in the Kashagan oilfield, the world's biggest oil discovery since the 1960s, the state had long set its sights on joining the Karachaganak consortium.
The ministry press service said the deal would allow it greater control over large scale investment projects at the field which accounts for 49% of Kazakhstan gas output and 18% of its crude oil production.
It also said the Karachaganak project would be allocated a quota of 0.5 million tonnes per year in the Caspian Pipeline Consortium which would later rise to 2 million tonnes per year.
BG and Eni each own 32.5% of the Karachaganak Petroleum Operating Group. Chevron has a 20% stake and LUKOIL 15%.
Two sources told Reuters on Friday that the partners would sell their stakes on a pro-rata basis. The ministry gave no details about this.
(Sourced from Reuters)
