China to buy US$5 billon stake in Kazakhstan oilfield

China to buy US$5 billon stake in Kazakhstan oilfield

David Nealis Ceres Ltd.

Chinese President Xi Jinping has agreed to a US$5 billion deal that would give state-owned China National Petroleum Corp (CNPC) 8.33% stake in Kazakhstan's giant Kashagan oilfield. Xi struck the deal with Kazakh President Nursultan Nazarbayev during his visit to Kazakhstan. The Kashagan oilfield, which located in the oil rich Caspian Sea, has an estimated reserve of 35 billion barrels. The field is expected to produce its first oil this year. The US$5 billion, 8.33% stake in Kashagan will be purchased by China from US oil firm ConocoPhilips.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

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