Djody buys Kazakh oil firm

JAKARTA (JP): Central Asia Petroleum Ltd., a subsidiary of Setdco Group, has won a tender to buy a Kazakh company which controls an oil field with reserves of about 1.5 billion barrels for US$1.5 billion, a Setdco executive said.

Setdco chief commissioner Setiawan Djody said he would explain the details when the deal was signed.

He was quoted yesterday by the Neraca daily as saying he was invited to meet Kazakh government officials in mid-March to negotiate the tax, royalties and other obligations.

Djody said he would assign Medco Group, which is controlled by businessman Arifin Panigoro, to operate the Kazakh company's oil field in Mangistaumunaigas, west of the Caspian Sea, which currently produces about 100,000 barrels of crude oil a day. (10)