Eric Watkins
Senior Correspondent
LOS ANGELES, Jan 15 -- Kazakhstan state-owned KazMunaiGaz reported it will purchase a 50% stake in Nations Energy Co., Calgary, from China's CITIC Group for $955 million under an agreement of principles signed by the firms Dec. 29.
CITIC currently owns 100% of Nations Energy.
CITIC's decision to purchase Nations' shares was finalized Dec. 30 after earlier speculation that Kazakhstan might not allow the deal to go through (OGJ Online, Dec. 11, 2006).
Nations agreed last October to sell its Kazakhstan oil assets to CITIC by December for $1.91 billion before adjustment for cash and debt.
Nations said its 94.6% owned subsidiary JSC Karazhanbasmunai holds 100% of the mineral rights until 2020 to develop Kazakhstan's Karazhanbas oil and gas field in Mangistau Oblast. It said the field holds proved reserves exceeding 340 million bbl of crude oil and produces more than 50,000 b/d of oil.
Contact Eric Watkins at [email protected].
