5 Aug 2009 13:46

KazMunayGas said to have closed Pavlodar refinery acquisition

ALMATY. Aug 5 (Interfax) - Kazakh national oil and gas company KazMunayGas (KMG) has closed the acquisition of a 100%-stake in the Pavlodar Petrochemicals Plant, a source with knowledge of the situation told Interfax.

"The deal on the Pavlodar Refinery has been closed. The paperwork was signed yesterday evening," the source said on August 5.

JSC MangistauMunayGas, which is owned by the BVI-registered Central Asia Petroleum Ltd, owned 58% of the refinery prior to the deal. The Kazakh Finance Ministry held the remaining shares.

The sale agreement for the 58% stake was signed by Central Asia Petroleum Ltd. and Mangistau Investments BV during a visit by Kazakh President Nursultan Nazarbayev to China. The founders of Mangistau Investments BV are KazMunayGas and China National Petroleum Corporation (CNPC) on a parity basis.

Mangistau Investments BV will gain control only over the upstream assets of JSC MangistauMunayGas. The Pavlodar refinery was not included in this deal. MangistauMunayGas is licensed to 36 oil and gas fields in Kazakhstan, with 15 of these under development. The largest fields are Kalamkas and Zhetybai.