October 30, 2006 -- Russia's LUKoil Overseas oil company says a Stockholm arbitration court has backed its litigation against the China National Petroleum Corporation (CNPC).
The company says the court on October 27 ruled that LUKoil Overseas has preemptive rights over CNPC for the purchase of half of the Kazakhstan-based Turgai Petroleum oil joint venture.
The court ruling legally authorizes LUKoil Overseas, which already owns 50 percent of the joint venture, to purchase the rest of it.
The litigation emerged months ago when CNPC took control of PetroKazakhstan Ltd., LUKoil Overseas' Canadian partner in Turgai Petroleum. PetroKazakhstan owned half of the joint venture.
Turgai Petroleum has been developing the Kumkol oil field in Kazakhstan's Qizilorda region since 1995. The joint venture last year produced more than 3 million tons of crude oil.
(Interfax-ANI, Kazakhstan Today)
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