28 Sep 2010 13:06

Sinopec replaces Mittal as Lukoil partner in Kazakh project

ASTANA. Sept 28 (Interfax) - Indian Mittal has sold Chinese Sinopec a 50% stake in Caspian Investments Resources, which is operating an oil production project in Kazakhstan, sources close to the project told Interfax.

Lukoil Overseas owns the other 50% stake in Caspian Investments Resources.

Lukoil Overseas confirmed the appearance of a new partner in the project.

Mittal Investments purchased the 50% stake in 2007 from Lukoil for approximately $1 billion. Caspian Investments Resources owns a 50% stake in projects to develop four Kazakh fields: Alibekmola and Kozhasai (ownership shared 50-50 with KazMunayGas), North Buzachi (with Chinese CNPC), and Arman (with Shell). The four fields yielded a total of 4.3 million tonnes of oil in 2009. Caspian Investments Resources also has a 25% stake in the project to explore the Zhambai Yuzhny and Yuzhnoye Zaburrunye fields in the northern Caspian. The company's proved and probable hydrocarbon reserves total 269.6 million barrels.

It was reported late last year that Mittal Investments, the investment company for steel magnate Lakshmi Mittal, was looking to sell its 50% stake in Caspian Investments Resources, possibly to its co-owner, Lukoil, but the Russian oil major declined to exercise its preemptive rights to buy the stake.