Lukoil PJSC has closed a $1.09 billion deal to sell its 50% share in Caspian Investments Resources Ltd. to Sinopec, according to a news release.
The required permits from the state authorities of the Republic of Kazakhstan were acquired in late July 2015.
Caspian Investments Resources Ltd. has been participating in the development of five hydrocarbon fields in Kazakhstan. They are the Alibekmola and Kozhasai in the Aktyubinsk region and Karakuduk, North Buzachi and Arman in the Mangistau Region, the release said. Lukoil joined these projects in December 2005.
Currently, Lukoil continues to develop oil and gas projects in Kazakhstan at the Tengiz, Karachaganak and Kumkol fields, and remains a member of the Caspian Pipeline Consortium, the release said.
In 2014, Lukoil said its share of production in Kazakhstan amounted to about 4.3 million tonnes of oil and about 1.5 billion cubic meters of commercial gas.
Carsten Fritsch, analyst at Commerzbank, said the surge in oil prices was due to a tight market, as shown by the 12-month forward curve and the premium at which the first-month futures contract is trading to the second.
The megaproject will also feature the world’s largest instance of CO2 capture for permanent sequestration and produce only environmentally friendly blue products.
Talks with U.S. suppliers began early this year but speeded up in recent months amid one of Asia's biggest power-generating, heating fuel crunch in decades.