Xinjiang Guanghui Industry to Acquire Kazakh Gas Block

Xinjiang Guanghui Industry is expected to acquire a 51% stake in the Nanyimaxiefu oil and gas block in Kazakhstan.

Guanghui Industry’s controlling shareholder Xinjiang Guanghui Petro Company and its subsidiary Jupiter Element Limited will jointly establish an oil company, Volga Petroleum.

Volga Petroleum will spend USD 200 million to acquire a target company set by the controller of the acquired oilfield.

According to estimates, the oilfield has minimum gas reserves of 110.26 billion cubic meters while the minimum oil reserves are 22.86 tons. The acquired field covers a total area of 1,272.6 square kilometres.

The company is applying for an extension of the exploration rights to July 2014.