Sinopec has bought Lukoil’s 50 percent stake in Kazakhstan’s Caspian Investment Resources (CIR) for $1.2 billion.
Lukoil created CIR in 2005 when they acquired Canadian Nelson Resources.
CIR holds stakes in four Kazakzh onshore oil projects, Alibekmola & Kozhasai, North Buzachi, Karakuduk, and Arman.
In 2013, Lukoil’s share of production was 10.2 million bbl of oil equivalent.
The Russian company said it is looking to streamline its Kazakh portfolio with the deal.
After the sale is completed, Lukoil will continue to hold interests in the Kumkol, Karachaganak, and Tengiz projects.
Lukoil CEO Vagit Alekperov said, “reallocate the investments to geologic exploration projects, including those in the Kazakhstan sector of the Caspian Sea.”
The deal, subject to approval from the Kazakh government, is expected to close by the end of the year.