PetroChina Company Limited (PetroChina) announced on Monday its acquisition of a 67 percent interest in PetroKazakhstan (PKZ) from its parent company China National Petroleum Corporation (CNPC).

 

The transaction was completed through CNPC Exploration and Development, a joint venture of PetroChina with CNPC.

 

PetroChina signed the agreement with its parent company to acquire 67 percent interest of PKZ for US$2.735 billion last August, the acquisition being finalized last December.

 

The new deal further strengthens PetroChina's sustainable growth potential in international oil and gas reserves as well as increasing shareholder values, said a senior executive with PetroChina.

 

CNPC Exploration and Development and KazMunayGas, the Kazakhstan national state-owned oil and gas company, now own 67 percent and 33 percent of interests in PKZ respectively.

 

CNPC took over PKZ in 2005 at a price of US$4.2 billion, still the largest overseas acquisition ever made by a Chinese company.

 

After closing the deal, China's top oil producer transferred 33 percent of its shares in PKZ to KazMunayGas last July.

 

PKZ Inc, an international energy company registered in Canada, has assets covering 12 oil fields and exploration licenses in five blocks of Kazakhstan with a combine annual crude oil production exceeding 7 million tons.

 

Listed in Hong Kong and New York, PetroChina operates most of CNPC's assets and liabilities relating to exploration and production, refining and marketing as well as chemicals and natural gas businesses.

 

(Xinhua News Agency January 9, 2007)