Kazakhstan to allocate $4 bln to KazMunaiGaz for supporting Kashagan project
ALMATY. Feb 29 (Interfax) - Kazakhstan's committee for managing the country's National Fund, at a meeting on Wednesday in Astana, decided to allocate a $4 billion loan to national company KazMunaiGaz in order to support the Kashagan project, the Kazakh Presidential Press Service said in a statement.
The statement said that funds would be allocated in two tranches in 2013 and 2015 through the National Fund's purchase of shares in KazMunaiGaz.
State fund Samruk-Kazyna, which includes KazMunaiGaz, proposed allocating $4 billion from the National Fund for the company at the start of February. These funds would finance KazMunaiGaz's debts generated from its Kashagan and Rompetrol projects. The funds would help to improve KazMunaiGaz's financial position, Samruk-Kazyna said.
KazMunaiGaz plans $20 billion in investment for 2010-2014, of which $8 billion will go to Kashagan while $4 billion is earmarked for oil refinery modernization.
The previous head of Samruk-Kazyna, Kairat Kelimbetov, earlier estimated KazMunaiGaz's external debt at over $10 billion because of projects such as Kashagan and Rompetrol (Romanian oil and gas holding Rompetrol is a KazMunaiGaz subsidiary). Peak debt should appear in 2012.
Recoverable oil reserves at Kashagan are estimated at 11 billion barrels. Total geological oil-carrying resources are estimated at 35 billion barrels. The field is one of the biggest in the world.