BG announced today that it has agreed to sell its remaining interest in the North Caspian Sea Production Sharing Agreement (PSA) to Sinopec International Petroleum Exploration and Production Corporation for $615 million.
The sale follows BG’s announcement on March 7, 2003 that it is to sell half of its interest in the North Caspian Sea PSA to CNOOC North Caspian Sea Ltd.
Under the agreement, Sinopec will acquire BG’s remaining one-twelfth (8.33%) interest in the PSA.
Completion of the transaction is subject to a number of conditions, including approvals from the Kazakhstan and Chinese authorities and the existing PSA partners waiving pre-emption rights.
‘We are delighted to have reached this agreement with Sinopec, which completes the divestment of our interest in the North Caspian PSA,’ said BG Chief Executive Frank Chapman. ‘It demonstrates the significant value that BG and its partners have created in the North Caspian and will enable us to maintain our focus on gas.’
‘BG remains strongly committed to Kazakhstan through retention of our key interests in the giant gas condensate field at Karachaganak and in the Caspian Pipeline Consortium,’ added Chapman.
The sale is expected to close during the 2003.