Karachaganak owners to yield 10pct to state

ALMATY: The consortium that owns the Karachaganak gas field in Kazakhstan has agreed to cede a 10 percent stake to the state, ending months of wrangling over its ownership, three sources close to the talks said on Thursday.

The Kazakh government will buy half of the stake at market price and secure the other 5 percent free of charge, one of the three sources said. In return, the state will drop all claims against the operators, except its tax cases, the source said.

Italy's ENI and Britain's BG Group are the biggest shareholders in the international consortium that runs the project, with a 32.5 percent stake each. US major Chevron has 20 percent and Russia's LUKOIL 15 percent.

Karachaganak Petroleum Operating Group (KPO), the consortium that operates the field, declined to comment.

Copyright Reuters, 2011