Transaction between Shell and BG may deprive them of share in Karachaganak field in Kazakhstan

Oil and gas giant Royal Dutch Shell in the merger by the British oil and gas company BG Group plc may lose its share in a major oil field in Kazakhstan, as in the event of deal completion the Government of the country can claim for BG Group’s shares in the project, BG says in its report for 2014.

"In the event of a change of control over BG Group, Kazakhstan can claim the right to purchase the company's share in the final production sharing agreement, which manages the operation of the gas and gas condensate field Karachaganak (BG Group now owns 29.25% in it)," - the British company says.

The Karachaganak field is controlled by a group of investors, which, in addition to the BG Group, are Eni (29.25%), Chevron (18%), Lukoil (13.5%) and KazMunaiGas (10%). As it is noted on the site of BG Group, the currently production at the deposit is carried out at the highest level and is about 45% of the total gas production in Kazakhstan and 16% of the production of liquid hydrocarbons.

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