KazMunayGas to Buy ConocoPhillips’ Interest in Kazakhstan

The government of Kazakhstan will acquire ConocoPhillips’ 8.4% interest in Kashagan, after pre-empting proposed sale to India’s ONGC Videsh, reads a note released on Tuesday.

The Ministry of Oil and Gas designated state-owned KazMunayGas (KMG) as the company that will acquire ConocoPhillips’ interest in Kashagan, located in Kazakhstan sector of the Caspian Sea.

“The decision by the Kazakhstan government to exercise its pre-emptive right demonstrates the value of this asset and moves us closer to completing this transaction,” said Don Wallette, KMG’s executive president.

ConocoPhillips will receive approximately $5 billion. The transaction is expected to close in the fourth quarter of 2013.