Amid speculations that Kazakhstan Government has struck down the much publicised ONGC Videsh ltd’s (OVl) $5 billion deal to buy ConocoPhillips’ 8.4 per cent stake in that country’s Kashagan oilfield in favour of China, the ONGC’s overseas arm said that it had received no intimation from the Central Asian nation regarding the matter.
“We have seen media reports claiming that Kazakhstan Government has refused the Kashagan deal, however we have received no official intimation from them on the matter and we have no information on this,” OVl Chairman D K Sarraf told The Pioneer when contacted for his reaction on the reported development.
As per agency reports quoting unnamed sources, Kazakhstan Government, which as per its law had the right of first refusal or pre-emption rights on the deal, is said to have exercised that option and decided to buy ConocoPhillips’ stake on its own at the same price.
The report further claims that after acquiring the stake through its national oil company KazMunaiGaz at $5 billion, the Central Asian nation will then sell it to China National Petroleum Corp (CNPC) for a reported $5.3-5.4 billion.
While OVl refused to further comment on the matter, the agency report further claimed that “the Central Asian country’s Oil and Gas Ministry has informed ConocoPhillips that its national oil company KazMunaiGaz will buy the US oil company’s 8.4 per cent interest in the world’s largest oil find in five decades for about $5 billion”.