CNPC, KMG purchase MMG for US$3.3 bln

Published: 27 Apr 2009 00:19:40 PST

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Apr. 27, 2009 (China Knowledge) - China National Petroleum Corporation (CNPC) said that its subsidiary, China National Oil and Gas Exploration and Development Corp, has signed an agreement with KazMunaiGas (KMG), the Kazakh state-owned company, to set up a joint venture (JV) to purchase JSC MangistauMunaiGas (MMG) for US$3.3 billion, sources reported.

The JV, Mangistau Investments, will be launched in Holland. CNPC's subsidiary and KMG will each own a 50% stake in the JV.

MMG, one of the largest privately-owned oil developers in Kazakhstan, has exploration and development rights on 15 oil and gas fields in the country and the Caspian region.

CNPC had been negotiating with KMG on buying a 49% stake in MMG, China Knowledge reported.