Mittal sells Kazakh co stake to Sinopec

Sep 28. Indian Express

Mittal sells Kazakh co stake to SinopecSteel tycoon Lakshmi N Mittal is believed to have sold his stake in a Kazakhstan oil company to China’s Sinopec after ONGC Videsh Ltd turned down the offer.

Mittal Investment Sarl, the holding company of Mittal family interest in world’s largest steel ArcelorMittal, sold its 50 per cent stake in Caspian Investment Resources, which operates an oil production project in Kazakhstan to China Petroleum and Chemical Corp (Sinopec), industry sources said.

Sources, however, could not say how much Sinopec paid for the stake in CIR, where Russia’s Lukoil Overseas owns the remaining 50 per cent.

An email sent to Mittal Investment (MIS) on the deal did not elicit any immediate response.

Mittal had purchased the 50 per cent stake in 2007 from Lukoil for USD 980 million. CIR owns a 50 per cent stake in projects to develop four Kazakh fields: Alibekmola and Kozhasai (ownership shared 50-50 with KazMunayGas), North Buzachi (with Chinese CNPC), and Arman (with Shell). The four fields yielded a total of 4.3 million tons of oil in 2009.