The government of Kazakhstan has preempted a bid by ONGC Videsh of India to acquire the 8.4% stake held by ConocoPhillips in the North Caspian Sea Production Sharing Agreement, which includes giant Kashagan oil and gas field (OGJ Online, Dec. 3, 2012).
State-owned KazMunaiGaz will buy the interest. Kazakhstan’s subsoil law provides for the preemption.
North Caspian Operating Co. operates the production-sharing agreement for seven companies.
ConocoPhillips said it expects proceeds of its sale to remain at about $5 billion, subject to normal adjustments.