China's CITIC Group Buys Kazakh Oil Assets

Сhina's CITIC Group, a diversified state-owned investment vehicle with few oil interests, furthered Beijing's drive for overseas energy assets on Thursday with the $1.9 billion purchase of a large Kazakh field.

It has agreed to buy the Kazakh oil assets of Canada-based Nations Energy Co Ltd., the cornerstone of which is the Karazhanbas oil and gas field, which has proved reserves of more than 340 million barrels and production of over 50,000 barrels per day (bpd), the companies said in a statement.

The deal was due to close in December, pending approval of shareholders, courts in the Canadian province of Alberta and the waiver of pre-emptive rights of the Kazakh government, which last year amended laws to give it first option on the sale of mineral resources and possibly on corporate deals.