Kazakhstan will not pretend to buy BG share in Karachaganak project

Almaty. March 17. Silkroadnews - Kazakhstan will not pretend to purchase BG shares in Karachaganak project, JSC NC “KazMunayGas” board chairman Sauat Mynbayev stated, KazTAG reports.
“No (Kazakhstan will not take advantage of the priority right to buy BG share in Karachaganak project - Silkroadnews). We do not intend to buy BG share rather than Shell, Shell is a potential buyer,” - S. Mynbayev said answering the question.
In the meantime, KazTAG reminds, in 2015 BG informed that the government of Kazakhstan could use its stock redemption right regarding the British Gas Group share in the Karachaganak project after the merge with Royal Dutch Shell concern.
“In case of change in control over BG Group Kazakhstan can claim a right to acquire a share in the final production sharing agreement within the framework of control over operations at the gas and gas condensate Karachaganak field (BG Group currently owns 29.25%),” - British Gas’s report said in 2014.
On April 8, 2015, the Anglo-Dutch oil and gas concern Royal Dutch Shell reported on the agreement reached on buying the British gas producer BG Group for $70 billion. As a result of the merger the BG Group shareholders will receive 19% of the newly merged company. The market value of the merged Anglo-Dutch company will reach about $300 billion. The deal will help Shell gaining access to the energy projects of BG Group, including those ones in Kazakhstan.
Kazakhstan’s ministry of energy reported the Kazakhstani authorities had no objection to the deal and that Shell will become a partner in the Karachaganak project. On May 4, 2015, President of Kazakhstan Nursultan Nazarbayev expressed hope that the changes will have a positive impact on the company’s received obligations.
Karachaganak is one of the largest and most complex in terms of development among the oil and gas fields in Kazakhstan. The deposit area is 280 square km, with reserves estimated as more than 1.2 billion tons of oil and condensate and over 1.35 trillion cubic meters of gas.
The field is developed by Karachaganak Petroleum Operating B.V., a joint venture between BG Group (29,25%), Eni (29,25%), Chevron (18 %), “Lukoil” JSC (13.5%) and ““KazMunayGas” NC” JSC (10%).