The transaction between NC KazMunayGas (KMG) and China Energy Company Limited (CEFC) has received the approval of Romanian authorities, KazMunayGas International has informed on Thursday in a press release.
According to the source, the KMG and CEFC shares in the new joint venture will be KMGI – 49% and CEFC – 51%.
Zhanat Tussupbekov, KMG International CEO said, according to the release, that the completing of the transaction will allow the establishment of a solid cooperation base between KMG and CEFC, facilitating the further expansion of the KMGI company in Eastern and Western Europe, as well as in other parts of the world. “This joint venture will benefit from the energy resources in Kazakhstan and from China’s financial resources to extend within the global project ‘One belt, one road’. The project is an exceptional opportunity for KMGI in view of extending its operations in Kazakhstan, which will in turn implement the governing programme for attracting investments. Special attention will be paid to the projects in Romania, the country where the KMGI Group has its main assets. Concluding, it should be noticed the fact that this global project will have multiplying effects for the participating countries – Romania, Kazakhstan, China – as well as positive social impact,” Zhanat Tussupbekov said.
The agreement between KMG and CEFC was signed in December 2016, involving the sale of the 51% stake in KMGI Group.
CEFC has recently received the agreement from the Supreme Defence Council (CSAT) and the confirmation from the Competition Council to complete the transaction.
In late September 2016 the Chinese company CEFC, which signed in April an agreement to take over KazMunaiGas International expanded a few months the deadline for completing the transaction, initially set for October this year.
JSC NC KazMunayGas is the National Oil & Gas Company of the Republic of Kazakhstan and operator for exploration, production, refining and transportation of hydrocarbons, representing the state’s interests in the oil and gas industry of Kazakhstan. National Company “KazMunayGas” is a vertically integrated oil and gas company with a complete production cycle from exploration and production of hydrocarbons, their transportation and processing to providing specialized services.
CEFC China Energy Company Limited is one of the fastest growing private companies in China. In 2016 it entered Global Fortune 500, ranking 229th. CEFC carries out operations in energy, financial and investment services.
KMG International N.V. owns and carries out major operations in refining, petrochemicals, retail, and trading, on several international markets. The retail network includes 1,100 fuelling points in Romania, Georgia, Bulgaria and Moldova. The Group’s main operations are developed in the Black Sea region, where the company owns two refineries. KMGI also carries out exploration, industrial and wells maintenance services.