KazMunaiGas to Sell Stakes in Three Oil Joint Ventures

Kazakhstan's state oil and gas company, KazMunaiGaz (KMGZ.YY), said Tuesday it plans to sell stakes in three fields at auction Nov 24.

The stakes are 50% in the Arman field, 69% in KazMunaiGasTelf and 40% in KarakudukMunai.

"The starting prices for the stakes are 3.7 billion tenge ($1=KZT131.21) for Karakudukmunai, KZT1.3 billion for Arman, and KZT2.6 billion for KazMunaiGazTelf," the statement said.

KMG has partners with pre-emptive rights to buy the stakes at a price equivalent to those determined in the auction process. Only if its existing partners decline to exercise those rights will the stakes be sold to the auction winner.

KMG's partner in Karakuduk is London-listed Nelson Resources Ltd (NLG.LN) with 36%. The remaining stake belongs to U.S.-Turkish owned Central Asia Guernsey Co. Karakuduk has proven reserves of around 26 million barrels, with another 37 million bbl of probable reserves.

Arman field is 50% owned by Royal Dutch/Shell Group (RD, SC). It currently produces 4,750 barrels a day and pumps them through the Caspian Pipeline Consortium's Tengiz-Novorossisk link.

KazMunaiGasTelf is 31% owned by Swiss-based Telf AG and has reserves of 15 million barrels.