CNPC to Acquire Kazakhstan's Oil Assets     

China National Petroleum Corporation (CNPC) steps forward to expand oversea resources business following its development strategy. It is reported that the oil giant talks to acquire a 48% stake in Kazakhstan based MangistauMunaiGas (MMG).
   MMG, founded in 1995, received a 25-year license from the Kazakh government for prospecting and production in the Asar, Burmasha, Kalamkas, Zhetybay Vostochnyy, Alatobe, Karagiye Severnoye, Oymasha and the Zhetybay Yuzhnyy oil and gas condensate fields. Among its other assets are the Pavlodar refinery and a network of gasoline stations Helios.
    The Indonesian company Central Asia Petroleum Ltd., original owner of MMG, has sold a 50% stake plus 2% option to the Kazakh national oil company KazMunaiGas (KMG) in 2008.
   CNPC could achieve the acquisition through providing a non-recourse loan to KMG, which has showed an interest in a certain stake in Karazhanbas, according to an unnamed source of CNPC.
    CITIC Resources Holdings Limited, the Hong Kong listed arm of CITIC Group, now holds the right to develop and produce oil in the Karazhanbas oilfield by 2020.
    CNPC has set five oversea cooperative oil and gas areas - the Central Asia, Africa, South America, the Middle East and the Asian Pacific Region in line with its oversea resources expansion strategy and placed the Central Asia as the first position now. (CCR2007 No. 36)