Oil and Gas

Kazakh gas field group to cede stake to state-sources

MOSCOW, Aug 13 (Reuters) - The four foreign stakeholders in Kazakhstan’s Karachaganak gas field have agreed to cut their stakes and relinquish 10 percent of the company to the Kazakh government, sources told Reuters.

One source close to the negotiations said the Karachaganak Petroleum Operating Group (KPO), made up of ENI ENI.MI, British Gas BG.L, Chevron CVX.N and LUKOIL LKOH.MM, discusssed terms of sale on July 19 but they were not final.

“The companies said they would transfer 5 percent to the state if it abandons the re-introduced oil export duty or drops its cost overstatement lawsuit of more than $1 billion,” the source said.

“Kazakhstan will buy the remaining 5 percent in cash,” he said. (Reporting by Jessica Bachman and Katya Golubkova in Moscow, Maria Gordeyeva and Robin Paxton in Almaty, and Chris Baldwin in London; writing by Jessica Bachman; editing by Melissa Akin)