ONGC loses Kashagan oil field to China

India’s ONGC has lost the giant Kashagan oilfield to the Chinese after Kazakhstan blocked its $5 billion deal to buy US energy major ConocoPhillips’ stake in the Caspian Sea oilfield

Written by Press Trust Of India | New Delhi | Published:July 3, 2013 1:00 am

India’s ONGC has lost the giant Kashagan oilfield to the Chinese after Kazakhstan blocked its $5 billion deal to buy US energy major ConocoPhillips’ stake in the Caspian Sea oilfield.

ONGC Videsh had in November last year struck a deal to buy ConocoPhillips’ 8.4 per cent stake in Kazakhstan’s biggest oilfield,Kashagan for $5 billion. As per Kazakh law,the nation had the right of first refusal or pre-emption rights that allowed it an option to step in and buy the stake at the price agreed between the Indian firm and ConocoPhillips.

The Kazakh government has decided to exercise its ROFR and acquire the stake held by ConocoPhillips,sources with direct knowledge of the development said.

The country’s gas ministry has informed ConocoPhillips its national oil company KazMunaiGaz will buy the US oil company’s 8.4 per cent interest in the world’s largest oil find in five decades for about $5 billion. This stake will then be sold to China National Petroleum Corp for $5.3-5.4 billion.

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