Caspian Investment Resources

Assets

Caspian Investment Resources for August, 2015 through a number of the joint venture owns different shares in four projects on hydrocarbon production in Kazakhstan:

• Alibekmola and Kozhasay (in equal shares with Kazakhstan KazMunaiGas),
• "Northern Buzachi" (the Chinese CNPC has 50%),
• Armand (Shell has 50%), 100% in the project of mining Karakuduk.

History

2013

In 2013 the share of Lukoil in hydrocarbon production on the Caspian Investment Resources projects made 10.2 million barrels of an oil equivalent.

2015: Sinopec receives 100% a share in the company

In August, 2015 Lukoil closed the transaction on sale of 50% in Caspian Investments Resources Ltd, the Chinese Sinopec became the buyer. The cost of the transaction was $1.087 billion, Lukoil reports. Permissions from state agencies of Kazakhstan are got in July, 2015^[1].

Now Sinopec has 100% in Caspian Investments Resources.

Originally completions of the transaction expected until the end of 2014. However Sinopec refused the transaction because of what in February Lukoil began arbitration procedures in London against Sinopec concerning causing essential damage.

Meanwhile the Russian-Chinese inter-governmental commission charged to Lukoil and Sinopec to solve a dispute in a pre-judicial order. Signed with summer of the party the new agreement, having reduced the cost of 50% of stocks from $1.2 billion to $1.067 billion. The arbitration procedures begun by Lukoil are suspended before closing of the transaction.

In the I quarter 2014 Lukoil suffered a loss for $358 million according to this transaction, and in the I quarter 2015 - an additional loss for $80 million.

Notes