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Chinese oil co likely to win Conoco stake in Kashagan-sources

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ALMATY/MOSCOW, June 28 | Fri Jun 28, 2013 10:54am EDT

ALMATY/MOSCOW, June 28 (Reuters) - China is the likely winner of ConocoPhillips' stake in Kashagan, the biggest oilfield discovered in nearly 50 years, three sources familiar with the talks said on Friday.

The sale could be a complex three-sided one, with state oil company Kazmunaigas taking control of the 8.4 percent stake in the field operator from ConocoPhillips, which is whittling down its worldwide portfolio, possibly backed by a Chinese loan.

Then the stake could be resold to a Chinese oil company, whole or in part, two of the sources said.

One of the sources said the Chinese side was likely to pay $5.3-$5.4 billion for the stake in the North Caspian Operating Company (NCOC), but the final price was not determined.

The state has pre-emptive purchase rights and its decision is due on Tuesday, July 2. The stake was initially promised to India's ONGC.
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