Market Chatter: Conoco's Kashagan Partners Have Two Months to Pre-empt Stake Sale
ConocoPhillips' ( COP ) partners in Kazakhstan's Kashagan field, the biggest oilfield discovery in over 4 decades, have 60 days to decide whether they want an 8.4% stake in the project promised to India's Oil and Natural Gas Corp, Reuters reports.
ConocoPhillips reportedly said it intends to sell its Kashagan stake to ONGC Videsh, the Indian group's overseas investment arm, for about $5 billion. But existing partners in the Kashagan project - state-run KazMunaiGas, Italy's Eni, ExxonMobil, Inpex Corp of Japan, Royal Dutch Shell, and France's Total - have the right of first refusal on the stake.
ONGC Videsh Managing Director D.K. Sarraf told Reuters the Kazakhstan government has 6 months to approve the deal after the expiry of a 60-day period for partners to exercise their pre-emption rights.
"The deal has to be approved within 240 days," he said.