Citic Resources Buys parent's Kazakhstan assets for $1 billion
LONDON. May 9. KAZINFORM. -- Citic Resources Holdings Ltd., a unit of China's fourth-largest oil producer, will buy a Kazakhstan oil field and other assets from its parent for $1 billion as demand rises in the world's second-largest energy consumer. According to Bloomberg, the company will gain access to a field that has an estimated 363.8 million barrels of oil reserves, the Beijing- based company said in a statement published in the Standard newspaper. Citic Resources shares will resume trade today after they were suspended on May 2, it said. The Beijing-based company plans to expand its oil and gas exploration business to tap soaring demand in China, the world's fastest-growing major economy. Buying the Kazakh field from its parent, a government investment arm, will add to oil production in Indonesia, where the company acquired its first energy asset. Citic Resources' parent, China International Trust & Investment Corp., in October agreed to buy the Karazhanbas oil field in western Kazakhstan from Canada's Nations Energy Co. for $1.9 billion. The company in February raised HK$1.72 billion from the sale of new shares to fund the acquisition. China's economy expanded 11.1 percent in the first three months of this year. It imported a recorded 3.3 million barrels of oil a day in March, the Beijing-based Customs General Administration of China said in April. Citic Resources, an energy and metals producer, bought 51 percent of an Indonesia oilfield for $97 million, gaining access to 39 million barrels of gross oil reserves, it said in July. Citic Group has granted KazMunaiGaz, an oil company owned by the Kazakhstan government, an option to buy a 50 percent stake in the project, part of an agreement to win the Central Asian government's approval on the transaction, two people familiar with the accord said Dec. 29. KazMunaiGaz will pay less than $950 million, one person said. Kazakh President Nursultan Nazarbayev wants international companies that buy into the nation's oil industry to include KazMunaiGaz as a partner.