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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (168829)	8/22/2005 5:30:24 PM
From: stockman_scott	Read Replies (1) \| Respond to of 281500

China wins PetroKazakhstan _____________________________________________ by Nick Watson TheDeal.com 22, Aug 2005 PetroKazakhstan Inc. announced Monday, Aug. 22, that China's CNPC International Ltd. had outbid India's Oil and Natural Gas Corp. Ltd. to acquire the Calgary, Alberta-based company, paying a hefty $4.18 billion to secure much-needed oil reserves. PetroKazakhstan, which has operations in the Central Asian republic of Kazakhstan, put itself up for sale in June following a serious breakdown in its relations with the Kazakh government. Kazakhstan is gradually easing out Western investors and looking to bring in more acquiescent Asian partners, whose governments have lobbied heavily to gain access to the country's large oil and gas reserves. PetroKazakhstan said CNPC International, a wholly owned subsidiary of state-owned China National Petroleum Corp. and its listed arm PetroChina Co., will offer US $55.00 per share in cash for all outstanding common shares of PetroKazakhstan. The offer represents a premium of 21% to the closing price on August 19, which analysts say reflects China's intense desire to secure oil reserves to fuel its booming economy after another Chinese company, CNOOC Ltd., had to abandon its $18.5 billion bid for of El Segundo, Calif.-based Unocal under intense pressure from Congress. Analysts say the price values PetroKazakhstan's proved and probable reserves of 550 million barrels of oil equivalent at roughly $7.60 a barrel, in line with other international oil firms though about five times more expensive than neighboring Russian firms. The boards of both PetroKazakhstan and CNPC International have recommended its shareholders accept CNPC International's offer. PetroKazakhstan is being advised by Goldman, Sachs & Co.'s London-based office. The Chinese consortium is being advised by CNPC's long-standing financial adviser Citigroup Inc.