Indonesia's Setdco buys 60% of Kazakh Mangistau<\/p>\n
ALMATY (Reuter): Central Asia Petroleum Ltd, a unit of
\nIndonesia's Setdco Group, has bought a 60-percent stake in
\nKazakhstan's largest oil company Mangistaumunaigaz for a total of
\nUS$4.348 billion, a senior Kazakh official said yesterday.<\/p>\n
\"The gist of the contract is as follows -- the company buys a
\n60 percent stake and pays $4.348 billion for it, $4.1 billion of
\nwhich is its investment proper and $248 million of which is a
\nbonus to the government,\" Deputy Prime Minister Alexander Pavlov
\ntold a news conference.<\/p>\n
He said the contract was signed on Sunday.<\/p>\n
\"We have committed billions of dollars of our resources to
\nthis project and in cooperating with the government and employees
\nof Mangistaumunaigaz we will do our best to make it the most
\nsuccessful venture in this country,\" said Hilmi Panigoro, head of
\nCentral Asia Petroleum.<\/p>\n
Pavlov, who is also chairman of Kazakhstan's tender committee,
\nsaid the Indonesian company was chosen \"because its offer was
\nincomparably better than that of other (six) bidders\".<\/p>\n
\"Out of those $4.1 billion to be invested within 20 years, $2
\nbillion must be invested in the first five years,\" he said.<\/p>\n
The government will own 30 percent of the remaining shares,
\nwhich will eventually be sold off to portfolio investors, while
\nworkers of Mangistaumunaigaz would hold 10 percent, he said.<\/p>\n
Pavlov said the contract provided for penalties in the case of
\na possible violation of the investment schedule.<\/p>\n
\"We commend the government of this country for creating an
\neconomic climate which is very conducive to attracting
\ncorporations like us to invest in this economy,\" Panigoro said.<\/p>\n
He said his company was planning to at least double the
\nproduction of crude oil of Mangistaumunaigaz over the next five
\nyears.<\/p>\n
Mangistaumunaigaz is located in the West of the Central Asian
\nstate and is its largest oil company. Last year it produced only
\nfour million tons of oil.<\/p>\n
In Soviet times oil production at Mangistaumunaigaz, which
\nsits on reserves estimated at 200 million tons, peaked at 25
\nmillion tons which is equivalent to Kazakhstan's current annual
\noil output.<\/p>\n
Pavlov said the government hoped that large foreign investment
\nwould revive the troubled oil industry and also maintain its
\nsocial infrastructure, reduce unemployment and improve the
\nworkers' skills.<\/p>",
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