Kazak Government Signs Deal with Part Indonesian-Owned Gas Company
January 12, 1998 - 0:0
ALMATY, Kazakstan The government has signed a $4.1 billion deal with Mangistaumunaigaz, a part Indonesian-owned gas company, to develop 15 oil and gas fields in western Kazakstan, an official said Saturday. ``This is probably the largest contract in Kazakstan in terms of attracting investments,'' said Rashid Sarsenov, chairman of Central Asia Petroleum. Central Asia Petroleum, a subsidiary of Indonesia's Medco, acquired 60 percent of Mangistaumunaigaz in 1997.
The Kazak-Indonesian joint venture is the second largest oil producer in Kazakstan, after the Chevron-led Tengizchevroil. Under the new deal, Central Asia petroleum is to provide $4.1 billion in investment over the first 20 years of the 31-year contract, Sarsenov said at a news conference. The first $2 billion of that is due in the next five years, he said. Mangistaumunaigaz now sells 70 percent of its oil domestically, at well below world market prices, according to Sarsenov, who said the company plans to increase the percentage of its exports.
(AP)
The Kazak-Indonesian joint venture is the second largest oil producer in Kazakstan, after the Chevron-led Tengizchevroil. Under the new deal, Central Asia petroleum is to provide $4.1 billion in investment over the first 20 years of the 31-year contract, Sarsenov said at a news conference. The first $2 billion of that is due in the next five years, he said. Mangistaumunaigaz now sells 70 percent of its oil domestically, at well below world market prices, according to Sarsenov, who said the company plans to increase the percentage of its exports.
(AP)