Purchase of 50% of JV KazGerMunai approved

Minority shareholders in KazMunaiGas EP have approved acquisition from parent KazMunaiGas of as much as 50% of KazGerMunai at an extraordinary general meeting in Astana.

April 13, 2007

Uchenna Izundu
International Editor

LONDON, Apr. 13 -- Minority shareholders in KazMunaiGas Exploration Production (KMG EP) have approved acquisition from parent JSC National Co. KazMunaiGas of as much as 50% of JV KazGerMunai LLP at an extraordinary general meeting in Astana. KMG EP has offered its parent $1.07 billion for the share in KazGerMunai, which produced 60,000 b/d of oil in 2006.

When the transaction is complete, KMG EP will be the second largest oil and gas producer in Kazakhstan after state-owned KazMunaiGas.

KazGerMunai, Kazakhstan's eighth largest oil producer, had reserves of 310 million bbl of proved and probable oil at the end of September 2006.

Contact Uchenna Izundu at [email protected].