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Indian Oil, Gas Major Lost to CNPC Over PetroKazakh Bid

Posted on: Tuesday, 23 August 2005, 09:01 CDT

Indian oil, gas major lost to CNPC over PetroKazakh bid

NEW DELHI, Aug. 22 (Xinhua) -- China has outbid India to acquire PetroKazakhstan Inc, a Canadian oil company operating in central Asia, Indian news Agency Press Trust of India (PTI) reported Monday.

China National Petroleum Corp (CNPC) beat ONGC Mittal Energy ( OME) Ltd, the joint venture between India's largest oil and gas firm ONGC and steel tycoon LN Mittal with a winning bid of 4.18- billion US dollar.

In a press statement, PetroKazakhstan said CNPC would pay 55 US dollars a share in cash.

PetroKazakh was OME's first bid since its inception in July this year. The LN Mittal steel group has been one of the biggest foreign investors in Kazakhstan after it acquired one of its largest steel plants in Temirtau (Kazakhstan) in 1996.

PetroKazakhstan accounts for about 12 percent of oil production in Kazakhstan, which has 3.3 percent of the world's reserves, and is the third largest oil producer in that country. The company's production averaged 151,102 barrels of oil a day in 2004.

State-owned Kzamunaigas is the largest oil producer in Kazakhstan, followed by Chevron.

Calgary-based PetroKazakhstan's board recommended that its shareholders accept the Chinese oil company's offer. The transaction is expected to close in October.

Source: Xinhua News Agency - CEIS

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