Kazakstan intends to sell state shareholdings in two oil companies for at least $100 million each by year’s end, according to a senior Kazak privatization official on November 20th.
The state holds a 30 percent share in Mangistaumunaigaz and a 25.12 percent stake in Aktobemunaigaz.
Mangistaumunaigaz, located in western Kazakstan, is 60 percent owned by Indonesia’s Central Asia Petroleum Ltd.
The company produced 60,000 b/d of crude in 1999 and expects to see an average output of 85,000 b/d for 2000.
Aktobemunaigaz, also in the western region of the country, produced 45,000 b/d in 1999 and plans to increase production to 50,000 b/d in 2000. The China National Petroleum Corp. (CNPC) owns 60.3 percent of Aktobemunaigaz.
The privatization official said that: “Mangistaumunaigaz is to a large extent ready, there are some good offers, and as soon as a decision is made, we’re ready to go ahead with the sale.”
A potential buyer has not yet been named, but the 2000 budget includes privatization revenues of 22.1 billion tenge ($153 million), of which $11 million has already been generated.
Kazakstan has made efforts to sell-off state shares in several companies for several years, but its plans have been delayed due to the Russian financial crisis in August 1999, which had a resulting effect on Kazakstan last year.