ASTANA. April 19 (Interfax) - Kazakh Oil and Gas Minister Sauat Mynbayev has cautioned national oil and gas company KazMunayGas against buying ConocoPhillip's stake in the big Kashagan oil project because the bulk of investment in the project is still ahead.

"The project needs oil priced at $90-$100 at a minimum in order to break even, because huge funds have been invested in the project. A potential buyer should understand that the bulk of investments still lie ahead. If KazMunayGas wants to buy the stake, as a company, not as a government, it must estimate how much money it would need to borrow to implement the project investment program," he said during an online conference hosted by the Bnews website on Friday.

"If KMG wants to be the major shareholder, it is claiming a bigger role in management of the project. I would be cautious about making statements that KazMunayGas is supremely qualified to lead implementation of such projects," he said.

The companies currently in the multinational consortium have the latest technologies and experience in operating such large projects.

"We can't afford to lose investors like that. It is necessary to use all the advantages they have," he said.

"These are huge oil reserves, but what price should be paid to produce oil is a big question," added Mynbayev.

"We asked all existing shareholders if they have any interest in buying the share, since they all have a preemptive right. (...) As far as we understand, they all declined the offer," said Mynbayev.

Earlier Mynbayev had said Kazakhstan might purchase the stake from ConocoPhillips for resale to Chinese interests, "but everything will depend on the terms."

All the companies in the North Caspian Operating Company (NCOC) waived the right to purchase