News 2024
May 2016KMG
China CEFC Energy Company Limited and JSC NC “KasMunayGas” (KMG) have signed transaction documents to establish a joint venture between the two energy giants. The signature of a joint venture comes just months after CEFC acquired 51% of KMG´s subsidiary KMG International (KMGI), which owns over 1,000 gas stations across Europe. As part of the agreement, CEFC undertakes to carry out investments in Europe and countries along Silk Road in the future. The equity proportion of KMG and CEFC in newly created joint venture is 49 to 51, respectively.
“In alliance with such a strong investor we can make a major breakthrough in this direction using KMGI as a joint platform for business development,” said Sauat Mynbayev, the Head of NC KMG. KMGI Group serves as a foundation for the development of the joint project of Kazakhstan's National Oil and Gas Operator NC KMG and the Chinese company CEFC, named the Silk Way project.
“The cooperation between CEFC and KMG is based on the strategic development objective, which will make KMGI a joint platform for both parties to achieve resources and performing strategy investment. This development is highly consistent with the spirit of 'One Belt One Road' and 'Nurly Zhol'. We believe, it will be a win-win cooperation for us to build a long term strategic partnership,” said Zang Jianjun.
The transaction is subject to various conditions precedent, including final approval by various European, Chinese and other regulatory authorities. It is expected the transaction will be completed by October, 2016.