Russia’s LUKOIL sells 50% in Caspian Investments Resources Ltd. to China’s Sinoptec

Russia’s LUKOIL oil giant has closed a deal to sell its 50% in Caspian Investments Resources Ltd. to China’s Sinoptec for $1.087 billion, LUKOIL’s Press Service reports. Caspian Investments Resources Ltd. is developing five oil field in Kazakhstan, notably Alibekmola, Kozhassai in Aktyubinsk oblast, Karakuduk, Severny Buzachi and Arman in Mangistau oblast.

 Respective permits for the deal from the Kazakhstan’s public bodies were obtained late July 2015, the statement reads.

 With the deal, Sinopec has become the sole owner of Caspian Investment Resources. The first 50% Caspian Investments Resources Ltd. had been purchased by Sinopec back in 2010.

LUKOIL had entered the project in December 2005. Since 2006 Lukoil’s share of the crude production to date stood at over 13 million tons coupled with over 300 million cubic meters of marketable gas.

 LUKOIL keep on its participation in Tengiz, Karachaganak and Kumkol projects based in Kazakhstan. The Company is part of the Caspian Pipeline Consortium. In 2014 LUKOIL’s production in Kazakhstan totaled 4.3 million tons of crude and 1.5 billion cubic meters of marketable gas.

 LUKOIL is responsible for 2% of the global crude production and holds about 1% of the global proven hydrocarbon reserves.