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Kazakhs offer BG $1.1bn deal

Tom Bawden
Thursday 06 October 2011 00:00 BST
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Kazakhstan said yesterday it would be willing to pay up to $1.1bn (£713m) for a 10th of Karachaganak, a local joint venture led by Britain's BG Group and Eni of Italy.

The government in Astana has been embroiled in an ownership debate about Karachaganak, the only major oil development in which the state does not hold a stake. This has included a dispute about taxes and accusations of environmental violations.

Hopes of a resolution grew yesterday after the Samruk-Kazyna sovereign wealth fund said it was prepared to pay up to $1.1bn for a stake as part of what the oil and gas minister, Sauat Mynbayev, described as "a package deal".

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