Staying at home: MMG to be divided by Kazakh companies
Kazakhstan drops Gazprom partnership
Kazakhstan's state oil company has decided against forming a joint venture with Russia's Gazprom Neft to run a Kazakhstan-based oil production company, a source close to the matter said.
Gazprom Neft, a subsidiary of Gazprom , said last year it would offer Kazakhstan a stake in one of its fields in Western Siberia in exchange for a 49% stake in Kazakh oil company MangistauMunaiGas (MMG).
"Gazprom Neft's plan to buy a stake in MMG was rejected in early September," the source told Reuters.
"MMG will be divided among Kazakh companies".
Kazakh state oil and gas firm KazMunaiGas has state approval to buy a controlling stake in MMG from Indonesia's Central Asia Petroleum.
MMG has total oil reserves of 812 million tonnes and recoverable reserves of 194 million tonnes.
KazMunaiGas told Retuers it was still in talks with MMG.
"We are starting commercial negotiations with the owners of MMG," KazMunaiGas head Kairgeldy Kabyldin told Reuters separately at an oil and gas exhibition in Almaty.
"We have not closed the deal yet."