CIC acquires stake in Kazakh Energy for $939 million
30 Sep 2009
China's $300-billion sovereign wealth fund China Investment Corp (CIC) today said that it has acquired a stake in state-owned Kazakh oil and gas company KazMunaiGas Exploration Production (KMG EP) for $939 million.
CIC has paid $939 million for about 11 per cent of the Global Depositary Receipts (GDRs) of KMG EP through its wholly owned subsidiary, Fullbloom Investment Corporation.
Astana, Kazakhstan-based KMG EP is the second largest oil producing company in Kazakhstan. Its shares are listed on the Kazakhstan Stock Exchange and its Global Depositary Receipts are listed on the main market of the London Stock Exchange.
KMG EP has a portfolio of 41 oil and gas fields located onshore in western Kazakhstan and at the end of 2008, the Kazak oil major's proven plus probable oil reserves were estimated to be 241 million tonnes (1,775 million barrels), with an estimated reserves life of 25 years at 2008 production levels.
From the beginning of this year China has been signing a number of energy deals with the former Soviet bloc country, which is a major supplier of crude oil through a cross-border pipeline running from Kazakhstan to China's north-western region of Xinjiang.
In April, PetroChina, the country's biggest listed oil company, agreed to acquire 50 per cent of a gas joint venture in Kazakhstan for $1.4 billion, with KazMunayGaz National owning the rest of the stake.
