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CNPC and KazMunayGas acquires 100% of MangistauMunaiGas shares
Friday, April 24, 2009

On April 16, 2009, CNPC Exploration and Development Company Ltd (CNPC E&D) signed agreement with KazMunayGas (KMG), the Kazakh state oil company, to purchase 100 percent of common shares in JSC Mangistaumunaigas (MMG) from Central Asia Petroleum Ltd (CAP) in Beijing.

The purchase of MMG, including Kalamkas and Zhetyba oil and gas fields and all its other exploration assets, is acquired through Mangistau Investments B.V., a joint venture equally owned by KMG and CNPC E&D, at a cost of USD3.3 billion. The shares and assets related to the Pavlodar oil refinery held by MMG have been excluded from the transaction.

As one of the largest petroleum enterprises in Kazakhstan, MMG is subsidiary of Central Asia Petroleum Ltd, owning licenses to explore and develop 15 oil and gas fields in Kazakhstan, as well as offshore oilfields in the Caspian region. Until Dec 31, 2008, MMG had 370 million barrels of remaining recoverable oil reserves and 41.8 billion cubic meters of natural gas reserve. In 2008, the company's annual crude output stood at 40 million barrels.

CNPC Exploration and Development Company Ltd. (CNPC E&D) is a joint venture equally owned by China National Oil & Gas Exploration and Development Corporation and PetroChina, subsidiaries of CNPC.

KazMunayGas is the Kazakh national upstream and downstream operator representing the interests of the state in the petroleum sector of Kazakhstan. 100 percent of shares in KazMunayGas are owned by JSC "Sovereign Wealth Fund "Samruk-Kazyna."

The acquisition is an important step to develop long term strategic partnership between China and Kazakhstan, but also helps with CNPC's overseas expansion.

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