On October15th,  2005 Chineese National Petroleum Company(CNPCI) and National Company KazMunaiGaz (KMG) have signed the Memorandum on Mutual Understanding, whereby CNPCI agreed to advantage KMG of 33% from total amount of  the issued stock of PetroKazakhstan Inc. and to the joint management of the Shymkent Oil Refinery with KMG. The transaction was completed by July, 5th, 2006.

 

As part of the agreements between CNPCI and KMG, on July 5th, 2006 CNPCI and KMG entered into a Memorandum on Agreement with PKOP, concerning prospective reorganisation of PKOP. According to it, on July 6th, 2007 PKKR transferred an indirect 50% share in Valsera Holdings B.V. (main PKOP shareholder) to KMG, while the remaining 50% was transferred to CNPC Exploration and Development Company Ltd (CNPC E&D) under the conditions, indicated in the Memorandum. The group of companies PetroKazakhstan has continued further integrated management of production and refining assets.

 

The experience, technologies and investment capabilities of our shareholders, of strong national companies undoubtedly will provide a new impulse to the development of PetroKazakhstan group.

 

Summary

 

СNPC International and CNODC are the subsidiaries of CNPC. CNPC is the largest state oil and gas corporation in China and one of the leading integrated oil and gas companies in the world. CNPC has been created in 1988 on the basis of the former Ministry of a petroleum industry of China. The structure of CNPC includes companies attending in the exploration, production, transportation and storage of oil and gas, and also oil refining and petrochemistry, research activities. CNPC is the largest producer and supplier of crude oil and maintains a dominant position in the production, processing and sales of oil and gas in China. http://www.cnpc.com.cn

 

CNPC Exploration and Development Company Ltd is an affiliated company of PetroChina Company Ltd and the joint venture PetroChina and CNODC, where each of both holds 50% share. Those two are 100% subsidiaries of CNPC.

 

JSC National Company KazMunaiGas is the national operator on exploration, extraction, production, refining and transportation of hydrocarbons, and represents state interests in the oil and gas sector of Kazakhstan. 100% of the shares of JSC NC KazMunaiGas belong to JSC Kazakhstan Holding Company for the Management of State Assets Samruk-Kazyna. http://www.kmg.kz