Eric Watkins
Senior Correspondent
LOS ANGELES, Dec. 11 -- Kazakhstan is reportedly planning to block an upcoming deal by Chinese state-owned Citic Group to take over Karazhanbas oil field in the western Kyzylorda region, currently owned by Nations Energy Co. of Calgary.
Citic and Nations Energy are looking to sign an agreement on the sale of $1.91 billion worth of assets in Kazakhstan by Dec. 20, but Kazakhstan's Novoye Pokoleniye newspaper reported that Kazakh Energy and Mineral Resources Minister Bakhtykozha Izmukhambetov plans to block the deal.
As a result, Citic may have to sell the Kazakh government part of the stake in oil assets it aims to buy from Nations Energy, in order to close the deal.
Izmukhambetov plans to give preference to state firm KazMunayGaz, the paper said, noting that a KazMunayGaz subsidiary recently came onto the stock market, but was not well received by investors due to its lack of oil and gas fields.
The paper said the company promised investors to increase its assets and suggested it would do so by obtaining new oil and gas fields for exploration from the ministry of energy and mineral resources, which has the sole right to grant concessions.
In October, Izmukhambetov said his country would block efforts by Citic to purchase the assets of Nations Energy, including Karazhanbas field (OGJ Online, Nov. 17, 2006).
Contact Eric Watkins at [email protected].
