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BG Group may lose its share in Kazakh Karachaganak field

18 May 2015 [15:45] - TODAY.AZ
BG Group may lose its share in Kazakh Karachaganak oil and gas field following its merger with Royal Dutch Shell.

“There are a number of agreements that take effect, alter or terminate upon a change of control of BG Group following a takeover bid," BG Group said in the annual report 2014.

"It is possible that the Republic of Kazakhstan may claim to have a right to acquire the Group’s interest in the Final Petroleum Sharing Agreement governing the operation of the Karachaganak gas and condensate field (or the shares in the company holding that interest) in the event of a change of control of BG Group following a takeover bid,” BG Group said.

In early April Royal Dutch Shell said it has agreed to buy oil and gas exploration firm BG Group in a deal that values the business at £47 billion ($70 billion).

The takeover of BG, formerly the exploration arm of British Gas, will be the energy sector’s biggest for a decade and create a company worth almost £180 billion.

Karachaganak field is one of the world's largest fields. It holds estimated hydrocarbons initially in place of 9 billion barrels of condensate and 48 trillion cubic feet of gas, with estimated gross reserves of over 2.4 billion barrels of condensate and 16 trillion cubic feet of gas.

Karachaganak is accounting for some 40 percent of the country's total gas production and around 13 percent of total liquids production. In 2014, Karachaganak Petroleum Operating produced some 142.5 million barrels of oil equivalent.

BG Group has 29.25 percent in the project, Eni - 29.25 percent, Chevron -18 percent, Lukoil -13.5 percent and Kazakh KazMunaiGas -10 percent.
URL: http://www.today.az/news/regions/140818.html

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