China National Petroleum Corporation (CNPC) announced this
morning that it has successfully acquired Canada-based
PetroKazakhstan Inc. (PK) through its wholly-owned subsidiary
CNPCI.
The Queen's Bench Court in Calgary, Canada granted an
unconditional final order yesterday to allow the acquisition after
Lukoil, a Russian firm, claimed it had first right of refusal to
buy a 50 percent stake in Turgai Petroleum, a joint venture between
it and PK.
Lukoil did not appeal the ruling, and CNPC said its US$4.18
billion bid, the largest overseas takeover by a Chinese company,
had been transacted.
Premier Wen Jiabao met Kazakhstan Prime Minister Danial Akhmetov
at the Shanghai Cooperation Organization Summit in Moscow
yesterday, and they both expressed their support for cooperation
between CNPC and Kazakhstan's state oil corporation KazMunaiGaz
over PK.
According to CNPC, the handover of business is underway, PK's
operations are being maintained and its employees are
unaffected.
PK is an international energy company registered in Canada, with
all of its assets, such as oilfields and refineries, in Kazakhstan.
Its total annual production capacity of crude oil exceeds seven
million tons and it owns twelve oil fields, and exploration
licenses in six blocks in Kazakhstan.
CNPC said it is confident that taking advantage of its strength
in capital, technology and management, as well as valuable
experience in Kazakhstan, the production capacity of PK will be
increased.
It said it would provide the Sino-Kazakhstan oil pipeline
expected to be completed at the end of this year with a reliable
supply.
(Xinhua News Agency October 27, 2005)