ConocoPhillips today announced it has completed the transaction with KazMunayGas (KMG) for the sale of its 8.4 percent interest in the North Caspian Sea Production Sharing Agreement (Kashagan) for approximately $5.4 billion.
In July 2013, ConocoPhillips announced it had received notification from the Kazakhstan Ministry of Oil and Gas (MOG) that it was exercising the right under the Subsoil Law of Kazakhstan to pre-empt ConocoPhillips’ proposed sale of its Kashagan interest to ONGC Videsh Limited. KMG was designated by the MOG as the purchasing entity.
“This is a very important milestone for ConocoPhillips,” said Don Wallette, executive vice president, Commercial, Business Development and Corporate Planning. “Since becoming an independent E&P company in May 2012, we have made significant progress on creating value for shareholders by divesting non-core assets. We appreciate the cooperation of KazMunayGas in the successful completion of this transaction.”
Proceeds from this transaction will be available for general corporate purposes, including investments in the company’s organic growth programs.
Press Release, October 31, 2013