Thursday, June 28, 2012 -
Kazakhstan officially acquired on Thursday its negotiated share of the Karachaganak oil and gas fields, and now holds a 10 percent stake in one of the world’s largest fields of this kind.
The Kazakh government paid $2 billion in cash to the British BG Group to complete the acquisition.
“With this agreement in place, the partnership can now move forward with new field development plans which are expected to unlock enormous value for both the country and the contracting companies,” BG Group Chief Executive Sir Frank Chapman said on Thursday in a statement released by the company.
Kazakhstan’s portion of the field will be managed by state-run enterprise KazMunaiGas (KMG).
The deal was reached late last year in return for settling outstanding tax claims against partners in the Karachaganak Petroleum Operating (KPO) consortium levied by the government.
The Kazakh government has leveled a variety of court suits against KPO, claiming around $2.2 billion in unpaid taxes and penalties. The two sides have been arguing the charges for more than two years.
U.K.’s BG Group and Italian Eni currently own a 32.5 percent holding in KPO, while U.S.-based Chevron Corp. has a 20 percent interest and Russia’s Lukoil 15 percent.