Accessibility links

Lukoil Sells Some Kazakh Oil Stakes To China's Sinopec For $1 Billion

Russia's largest private oil firm Lukoil has sold some of its Kazakh stakes to China's energy giant Sinopec for $1.09 billion, the company said on August 20.

Lukoil offloaded its 50 percent share in Caspian Investments Resources, which participates in five fields in the Central Asian nation, it said.

Lukoil remains the largest Russian player in Kazakhstan despite the sale, because of its involvement in the Tengiz, Karachaganak, and Kumkol fields.

The deal with Sinopec, Asia's largest refiner, was dragging on. The two sides initially inked a $1.2 billion purchase agreement last year. Lukoil went to an arbitration court in February after Sinopec refused to finalize the deal.

Energy-rich former Soviet Kazakhstan has remained in Moscow's sphere of influence and is a part of a Russian-backed customs union.

The Central Asian nation is home to one of the world's largest offshore oil fields, the Kashagan field, which has attracted oil majors such as Total, ExxonMobil, and Shell.

Based on reporting by TASS and AFP