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China eyes Kazakh oil

China eyes Kazakh oil published on

In last six months attention of many observers was focused on the events in Kazakhstan connected to the activities of the Chinese companies from the energy sector. In November last year one of the shareholders of the consortium, that manages development and extraction of oil in one of the richest oil deposits in the world – Kashagan, ConocoPhilips took a decision to sell its stake to the Indian company ONGC Videsh. Transaction has not been finalized yet as it is subject to the obligatory approval from the government of The Republic of Kazakhstan. The approval is still pending. The Kazakhstan government is entitled to the preemptive purchase of the shares and considers to use its right to purchase the ConocoPhilips stake, however not for Kazakhstan but for a third party – one of the Chinese state owned oil companies. Kazakhstan’s government plans have led to the new wave of discussion concerning share of Chinese companies in the Kazakh energy sector and increasing Kazakhstan’s dependency on the mighty neighbor.

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