By OGJ editors
HOUSTON, Nov. 1 -- OAO Lukoil Overseas said it intends to buy a 50% interest in Turgai Petroleum Inc., a Kazakhstan company, now that the Arbitration Institute of the Stockholm Chamber of Commerce (Sweden) has ruled in its favor.
Turgai Petroleum's primarily asset is Kumkol field in the Kyzylorda region.
Arbitrators ruled in Lukoil's favor in a counter-claim it filed following PetroKazakhstan Inc.'s July 2004 claim against Lukoil.
Previously, Chinese National Petroleum Corp. (CNPC) acquired 100% of PetroKazakhstan Inc., which owns a stake in Turgai Petroleum. A shareholders agreement was violated because Lukoil was not asked whether it wanted to exercise its pre-emptive right to a stake in Turgai before CNPC bought PetroKazakhstan.
An independent expert will determine the price, which then must be approved by both CNPC and Lukoil. Failing an agreement on the price, the Stockholm Arbitration will appoint a price.
