Eric Watkins
Senior Correspondent
LOS ANGELES, Nov 17 -- Kazakhstan's oil minister Baktykozha Izmukhambetov said his country will block efforts by CITIC Group of China to purchase the assets of Nations Energy Co., Calgary, which include Karazhanbas field (OGJ Online, Oct. 26, 2006).
"We must take extreme measures to stop the agreement on the Karazhanbas," Izmukhambetov said in televised remarks. He did not detail the measures or the reasons for his decision concerning the deal, which requires approval by Nations Energy shareholders as well as the governments of Canada and Kazakhstan.
Apart from acquiring the field, CITIC had planned to build a medium-sized refinery at Karazhanbas, said Zhang Jijing, a CITIC Group director in October. "This is an excellent platform for CITIC's further diversified investment and business cooperation in Kazakhstan," Zhang said.
Nations Energy Co. acquired the field in 1997, and has invested $250 million since then, including $120 million in 2005. The field, with reserves estimated at 340 million bbl, currently produces some 50,000 b/d, but plans call for an increase to 80,000-90,000 b/d in 1-2 years.
File photo from PDVSA..
