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Lukoil sells its stake in Kazakh oil producer for $1 billion

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Staff writer ▼ | August 22, 2015
Energy business   Sinopec bought Caspian Investments Resources

Lukoilt sold its 50 percent in Kazakh oil producer Caspian Investments Resources to Sinopec, a rival company based in China, for $1 billion, giving the Chinese oil company full control.

The Caspian producer plays a role in the development of five separate fields in Kazakhstan. Lukoil said cumulative production since 2006 has amounted to 95 million barrels of crude oil and around 1 billion cubic feet of natural gas.

Kazakhstan, meanwhile, expects a major lift in oil production with the planned restart of operations at its giant Kashagan oil field in the Caspian Sea which was halted in October 2013, less than a month after it started, when a pipeline associated with the field cracked open.

Production is expected to reach 630 million barrels in 2017 and 760 million barrels in 2020.

The Asian Development Bank said Friday it approved a $1 billion loan to help Kazakhstan strengthen its economy.

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