KazMunaiGas interested in Oman’s stake in CPC

energy

KazMunaiGas interested in Oman’s stake in CPC

By SRI ⋅ July 13, 2008 ⋅

(SRI) - KazMunaiGas (KMG), the national oil company, has confirmed its interest in acquiring Oman’s stake in the Caspian Pipeline Consortium (CPC) pipeline, Interfax reported on Friday.

“There is always interest in such a strategic project,” KMG president Serik Burkitbaev said at a press briefing in Astana.

“We have expressed our interest and if the government gives its okay, we will evaluate how economically beneficial it would be, since the stake would be sold at its commercial value. It will be expensive.”

Timur Kulibaev, chairman of the KazEnergy association, said earlier that KMG was interested in acquiring a part of Oman’s stake in the pipeline. Increasing its stake in the pipeline would enable KMG to boost exports on the CPC. KazMunaiGas currently is not a shareholder in the project but the Kazakh government has a 19 percent stake.

Oman decided to withdraw from CPC due to what it called the inefficiency of the project. The two other governments with stakes in the CPC - Russia and Kazakhstan - have the right of first refusal to buy out any stake available for sale. They would split Oman’s stake equally between themselves.