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Kashagan Deal Inked

Kashagan Deal Inked published on

Xi Jinping’s visit to Kazakhstan has contributed to closing the deal on the Chinese participation in the Kashagan project (our previous articles on Kashagan here and here. On Saturday Reuters reported the deal and provided some details of the transaction. Kazakh sources like Tengrinews.kz and Newskaz also informed about the sale of the shares in Kashagan project to China National Petroleum Corp (CNPC) but without elaborating on the conditions. Astana TV today informed that details of the whole transaction would be announced later. According to Reuters KazMunayGas JSC (KMG) will resell ConocoPhilip’s shares for around 5 bln USD, amount, that is slightly lower than expected. CNPC however will pay up to $3 billion to cover half of Kazakhstan’s financing of the second phase of Kashagan’s development which was one of the additional costs to be paid by the Chinese buyer I wrote about in the previous articles. Another part of the deal is the agreement that would guarantee loans from The China Development Bank and The Export-Import Bank of China – worth respectively $3 billion and $5 billion – to Kazakhstan’s state holding firm Baiterek. Official version of the terms and conditions will be revealed later and transaction will be probably fnalized in October but as deal was supported and announced both by Xi Jinping and Nursultan Nazarbaev and other Kazakh officials it’s hardly possible that it would not be. It’s worth mentioning that the agreement on Kashagan is only a part of the whole set of projects worth 30 bln USD that were inked during Xi’s visit.

Chinese in Kashagan

Chinese in Kashagan published on

Several weeks ago we wrote (here) about the complex situation resulting from ConocoPhillips’ decision to exit the North Caspian Operating Company B.V. (NCOC) and its intent to sell stake in the consortium to the Indian company ONGC Videsh Limited (OVL). In the previous article we also mentioned the possible reactions of the Kazakh government, which was considering blocking the deal and purchasing ConocoPhillips shares only to resell them to a Chinese state-owned enterprise. On July 2 the Ministry of Oil and Gas announced on its official website that state-owned KazMunayGas JSC (KMG) would purchase ConocoPhillips shares in the consortium on behalf of the Republic of Kazakhstan. On the same day on the sidelines of energy summit in Moscow, Lyazzat Kiinov, KMG’s head at that time, was reported saying that China National Petroleum Corporation (CNPC) would pay more than US$5 billion for the shares (US$5 billion was the amount agreed between ConocoPhillips and OVL). Replacements and demotions in the Ministry of Oil and Gas and state-owned companies followed the government’s decision and Kazakh media were flooded with speculation about the possible terms under which the government had agreed to resell shares to a Chinese company.

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Chińska firma w Kaszaganie

Chińska firma w Kaszaganie published on

Kilka tygodni temu (tutaj) pisaliśmy o skomplikowanej sytuacji, jaka powstała w kaszagańskim projekcie z powodu ogłoszonego przez ConocoPhillips wyjścia z konsorcjum North Caspian Operating Company B.V. (NCOC) i planowanej sprzedaży udziałów indyjskiej firmie ONGC Videsh Limited (OVL) oraz możliwości zablokowania transakcji przez rząd Kazachstanu poprzez przejęcie udziałów ConocoPhillips w celu ich odsprzedaży jednej z chińskich firm państwowych. Zgodnie z zapowiedziami rząd Kazachstanu ogłosił drugiego lipca na stronie Ministerstwa Ropy i Gazu, że państwowy koncern KazMunayGas JSC (KMG) przejmie w imieniu państwa udziały ConocoPhillips w konsorcjum. Tego samego dnia na szczycie energetycznym w Moskwie Lâzat Kiinov – wówczas jeszcze szef KMG – miał powiedzieć, że China National Petroleum Corporation (CNPC) zapłaci za udziały więcej niż 5 mld USD (5 mld USD to suma, jakiej za swoje udziały oczekuje Conoco). Za decyzją rządu poszły zmiany personalne w Ministerstwie Ropy i Gazu oraz firmach państwowych, a w kazachskich mediach pojawiły się informacje dotyczące warunków, na jakich rząd miałby odstąpić nabyte udziały firmie CNPC.

 

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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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Chińskie zakusy na kazachską ropę

Chińskie zakusy na kazachską ropę published on

Od kilku miesięcy uwagę wielu obserwatorów przykuwają wydarzenia związane z działalnością chińskich firm sektora energetycznego w Kazachstanie. W listopadzie ubiegłego roku jeden z udziałowców konsorcjum, które zarządza rozwojem i wydobyciem ropy z jednego z największych na świecie złóż, ConocoPhilips podjął decyzję o sprzedaży swoich udziałów indyjskiej firmie ONGC Videsh. Realizacja transakcji pozostaje jednak w stanie zawieszenia z powodu braku koniecznej aprobaty rządu Republiki Kazachstan, który rozważa zakup udziałów, ale nie na rzecz państwa kazachskiego, a dla strony trzeciej – jednego z chińskich państwowych koncernów naftowych. Stanowisko kazachskiego rządu wywołało kolejną falę dyskusji na temat udziału chińskich firm w kazachskim sektorze wydobywczym i rosnącej zależności Kazachstanu od potężnego sąsiada.

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