CNOOC to acquire stake in Kazakhstan oil and gas field

www.interfax.com 11.03.2003 08:07:00 GMT  

Shanghai. (Interfax-China) - With the Chinese government continuing to encourage Chinese oil companies to "go overseas" in search of new reserves, the China National Offshore Oil Corporation (CNOOC) has announced to Interfax that it has acquired a stake in the Kashagan Field in the north Caspian Sea, off the coast of Kazakhstan.

CNOOC has entered into an agreement with BG International Ltd, a wholly-owned subsidiary of the BG Group, to buy a 8.33% stake in the North Caspian Sea Project, covering 5,600 sq km and including the discoveries at Kashagan, Kalamkas, Kairan and Aktote. The company will pay USD 615 mln for the purchase. Kashagan is thought to be the largest find in thirty years, and could contain as much as 13 bln recoverable barrels of oil. The consortium behind the project also includes ENI-Agip, ConocoPhillips, ExxonMobil, INPEX, Shell and TotalFinaElf.

In the attempt to address China's growing energy supply gap, the Chinese government have urged the large state-owned companies such as CNOOC, Sinopec and CNPC to buy stakes in oil and gas fields abroad. CNOOC already has interests in the Tangguh gas field, while CNPC is involved in projects in Venezuela, Sudan, Oman, Azerbaijan and Kazakhstan. Sinopec, meanwhile, has acquired stakes in fields in Nigeria, among others.