Astana, Kazakhstan-based KazMunaiGas Exploration Production plans to acquire a 50% interest in Citic Canada Energy Ltd. from China state-owned conglomerate Citic Group for approximately US$930 million.

Citic Canada's main asset is a 94.6% interest and 100% voting control of Karazhanbasmunai, an E&P company developing Karazhanbas Field in western Kazakhstan. Total proven reserves as of Jan. 1 are approximately 364 million barrels of oil. Production in 2006 was 42,700 barrels of oil per day.

KazMunaiGas will pay US$875.7 million in cash and finance US$54.5 million. The acquisition adds 10% to KazMunaiGas' production.

StatoilHydro, Oslo, Norway, (Oslo: STL; NYSE: STO) has entered a framework agreement with Gazprom, Moscow, (RTS: GAZP) to develop Phase 1 of the Shtokman gas condensate field in the Barents Sea offshore Russia.

StatoilHydro will acquire a 24% interest in Shtokman Development Co., a special-purpose company that will develop Phase 1 of the field. Gazprom will retain 51% of the company and Total SA, Paris, (NYSE: TOT) will hold the remaining 25%.

Shtokman Field's annual production for the first phase is estimated to be 23.7 billion cubic meters of gas. Reserves include approximately 3.7 trillion cubic meters of gas initially in place and 31 million tons of gas condensate.

Gazprom management committee chairman Alexey Miller says, "We have giant gas reserves at the Barents Sea shelf, while our partners from Norway have a good experience in the sector of gas production and transmission in the severe environment of the Arctic. Our joint efforts will be the keystone of successful operation in the Arctic region."

StatoilHydro president and chief executive Helge Lund says, "We seek cooperation with Gazprom and Total to execute this cutting-edge project using our technologies, experience and competence in the field of major offshore projects development. We believe that Shtokman project may impact the development and adaptation of technologies allowing effective and environmentally safe operation in the cold and severe climate conditions."