Mittal to pay Lukoil $980 million for 50-per cent stake in Kazakh oil firm
14 Dec 2006
Mumbai: Lakshmi Mittal's Mittal Investments will pay Russia's Lukoil $980 million (Rs4,410 crore) to buy 50-per cent stake in a Kazakhstan oil firm. The Kazakhstan oil firm is owned by Caspian Investments Resources, a 100-per cent subsidiary of Lukoil , the company said in a release.
Mittal Investments may later transfer the Kazakhstan assets to ONGC-Mittal Energy Ltd (OMEL), its venture with state-run ONGC.
"Mittal Investment will buy 50-per cent stake in the Russian company's wholly owned subsidiary in Kazakhstan, Caspian Investments Resources. If approved by local authorities and Lukoil, the acquisition will go to OMEL at a later stage," industry sources said.
The deal with Mittal Investments, planned for completion in early 2007, also covers debt of $160-million held by the venture. Caspian Investments Resources has reserves totalling 270 million barrels of crude.
Caspian Investment Resources owns Nelson Resources, which Lukoil acquired for $2 billion in 2005. Nelson carries out hydrocarbon production projects at several Kazakh fields.
