News 2015
May 2015KPO
The Government of Kazakhstan may exercise the right of redemption of a share, owned by British Gas Group in the Karachaganak project after its acquisition by Royal Dutch Shell, BG said in its report for 2014. "In the event of changing the control over BG Group, Kazakhstan might declare the right to acquire a share in the final production sharing agreement within the frameworks of the arrangements for the Karachaganak gas condensate field (BG Group currently owns 29.25%)”- stipulates the report of British Gas for 2014, reports KazTAG.
We remind that on April 8 the Anglo-Dutch oil and gas group Royal Dutch Shell reported that they agreed to buy the British BG Group for $ 70 billion. As a result of the deal, BG Group shareholders will receive 19 % share in the merged company. The market value of the joint Anglo-Dutch company will reach almost $ 300 billion. The deal will help Shell to access energy projects of BG Group, including those in Kazakhstan. Ministry of Energy of the Republic of Kazakhstan reported that the Kazakhstani authorities have no objection to the deal completion and that Shell will be a partner in Karachaganak project.
On May 4, President of Kazakhstan Nursultan Nazarbayev expressed the hope that the changes will affect positively on the obligations, taken by Shell. Karachaganak is one of the largest and most complex oil and gas fields in Kazakhstan in terms of exploitation. Area of the field is 280 m2. km, its reserves are estimated at more than 1.2 billion tons of oil and condensate and more than 1.35 trillion m3 of gas. The report of British Gas stipulates that the significant reserves of hydrocarbons remain at the field, of which only 10% are depleted. Karachaganak Petroleum Operating B.V. is developing the gas field. The company is a joint venture between BG Group (29.25 %), Eni (29.25 %), Chevron (18%), Lukoil (13.5%) and and NC KazMunayGas JSC (10 %).