China’s Sinopec purchased a stake in five Kazakhstan hydrocarbon fields from Russia-based Lukoil on Thursday for $1.09 billion.
According to AFP, Sinopec will acquire a 50 percent stake in Caspian Investments Resources, a participating player in five Kazakhstan fields.
Sinopec initially agreed to purchase the stake for $1.2 billion last year but was taken to arbitration court by Lukoil after refusing to finalize the deal.
Caspian participates in the Alibekmola and Kozhasai fields in the Aktyubinsk region and the Karakuduk, North Buzachi and Arman fields in the Mangistau Region, E&P Magazine said.
Lukoil will continue to develop projects in Kazakhstan at the Tengiz, Karachaganak and Kumkol fields.
The company will also stay on as a member of the Caspian Pipeline Consortium.
Lukoil created Caspian Investments Resources in 2005 when it acquired Canadian Nelson Resources.
Despite the sale, Lukoil will remain the largest Russian player in Kazakhstan.
Lukoil’s share of production in Kazakhstan hit 4.3 million tons of oil and about 1.5 billion cubic meters of commercial gas in 2014, E&P Magazine added.