BP Sells LUKARCO Stake to LUKOIL
BP announced that it has divested its interest in Kazakhstan's Tengiz oil field and the Caspian Pipeline Consortium (CPC) pipeline, carrying oil between Kazakhstan and Russia, by selling its 46 per cent stake in LUKARCO to Russia's LUKOIL.
LUKOIL, which already owns 54 per cent of LUKARCO, will pay $1.6 billion in cash in three instalments over the next two years. A $43 million BP loan will also be repaid to BP by LUKARCO. LUKARCO owns a 5 per cent share in TengizChevroil (TCO), which produces oil from the Tengiz field, and a 12.5 per cent interest in CPC.
David Peattie, BP's head of Russia and Kazakhstan, said: "We are pleased to have concluded this sale with LUKOIL, which follows our earlier transaction with KazMunaiGaz. We wish CPC every success in achieving the planned expansion of the pipeline which is important to Kazakhstan and Russia. We greatly appreciate the support for this sale from Transneft, KazMunaiGaz, the CPC shareholders and TCO partners and the governments of both countries." The sale has been approved by the Government of the Republic of Kazakhstan, CPC shareholders and TCO partners.
The sale to LUKOIL means that BP has no remaining share in CPC or Tengiz. In April 2009 BP sold its 49.9 per cent stake in Kazakhstan Pipeline Ventures (KPV), which held a 1.75 per cent share in CPC, to state-owned KazMunaiGaz for $250 million.