Kazakhstan to take stake in Karachaganak oil, gas field

Kazakhstan is expected to acquire a 10 percent stake in a foreign consortium that operates the Karachaganak oil and gas field in the northwest of the country, media reports said.

As per the deal, Kazakhstan would pay $1 billion for a five-percent stake in the Karachaganak Petroleum Operating Group, and in return for the other 5 percent, it would drop some of its legal claims against the operators of the group.

Britain's BG Group, Italy’s Eni each own a 32.5-percent stake in the consortium, while Chevron Corp has 20 percent and Russia's LUKOIL owns the remaining 15 percent.

Over the past few years, the government has repeatedly accused the consortium of overstating costs and violating ecological laws, but the consortium has denied any wrongdoing.

Karachaganak, which is located near the border with Russia, currently accounts for 49 percent of Kazakhstan's gas production and 18 percent of its crude oil production.