China has indicated an interest in purchasing a stake in US oil company ConocoPhillips in a multinational consortium aiming to develop Kazakhstan's Kashagan oil field. This was confirmed by the Oil & Gas Minister of Kazakhstand, Sauat Mynbayev.
In an interview with reporters, Mynbayev said "Kazakhstan has not yet taken such a decision, but there is such a possibility." There was no confirmation as to the company or government entity representing China in Kashagan discussions with Kazakhstan.
Kazakhstan is the largest oil producer in Central Asia and is second only to Russia overall. It owns a pre-emptive right to buy out the 8.4% shareholdings of ConocoPhillips in the Kashagan oilfield.
ConocoPhillips has been divesting overseas assets in order to cut debt and increaae its investments in the domestic shale oil and gas. It originally intended to sell its share in Kashagan to Oil and Natural Gas Corp of India.
Kazakhstan has until the end of May whether or not to buy out the stake of ConocoPhillips and according to Mynbayev, the future is dependent on the terms proposed in offers to purchase the Kashagan share.
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