KMG EP to acquire interest in PetroKazakhstan

JSC KazMunaiGas Exploration Production (KMG EP) will acquire a 33% stake in PetroKazakhstan Inc. for $100.5 million in cash from the KazMunayGas.

Sep 30th, 2009

Uchenna Izundu
OGJ International Editor

LONDON, Sept. 30 -- JSC KazMunaiGas Exploration Production (KMG EP) will acquire a 33% stake in PetroKazakhstan Inc. for $100.5 million in cash from the KazMunayGas.

The deal is subject to approval from the regulatory authorities and shareholders.

KMG EP will gain access to PetroKazakhstan’s interests in 16 oil fields, 11 of which are at different stages of development. In 2008 it produced 136,000 b/d of oil. The second shareholder of PetroKazakhstan is CNPC Exploration & Development Co. Ltd., which has 67% in the company.

KMG EP will use its financial resources to acquire KazMunaiGaz PKI Finance BV, which in turn owns 33% of PetroKazakhstan. KMG EP will also take over $831 million of debt.

Kenzhebek Ibrashev, KMG EP chief executive officer, said, “This deal delivers on the initiatives announced at the time of the IPO and will allow the company to strengthen its position as a major oil producer in the country.”

An extraordinary general shareholder meeting will be held Nov. 10. If approved, the transaction is expected to close within a few weeks.

Contact Uchenna Izundu at uchennai@pennwell.com.

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