China National Petroleum Corporation (CNPC) and Kazakhstan’s state oil company Kazmunaigas have agreed to jointly purchase Kazakh oil company JSC Mangistaumunaigas (MMG) for US$3.3 billion.
This news comes following a US$5 billion loan-for-oil agreement between Chinese and Kazakh officials earlier this month.
“The transaction is an important step to develop long-term strategic partnership between China and Kazakhstan. It also helps our overseas expansion,” CNPC said in a statement on their website.
The purchase of MMG includes two oil and gas fields and the licenses to explore and develop 15 others in Kazakhstan and the Caspian region. It also includes all other oil and natural gas assets.
MMG’s crude oil output in 2008 was 40 million barrels and it had 41.8 billion cubic meters of natural gas reserves, according to China Daily.