India's Oil & Natural Gas Has Bid for PetroKazakhstan
Bloomberg.com: Canada: "India's Oil & Natural Gas Has Bid for PetroKazakhstan"
Aug. 16 (Bloomberg) -- India's Oil & Natural Gas Corp. and steel billionaire Lakshmi Mittal bid for PetroKazakhstan Inc., which has a market value of $3.3 billion, competing with China for access to central Asia's fuel reserves.
The Indian company submitted a bid yesterday, Chairman Subir Raha said in a phone interview today. More than one offer was received, Calgary-based PetroKazakhstan said in a statement yesterday, without giving details. PetroChina Co.'s Hong Kong- based spokesman Mao Zefeng wouldn't comment on a report in the New York Times that the Chinese company's parent may have bid.
PetroKazakhstan accounts for about 12 percent of oil production in Kazakhstan, which has 3.3 percent of the world's reserves. India and China are trying to overcome stagnating output from their ageing fields by securing supplies overseas. China's Cnooc Ltd. this month withdrew an $18.5 billion bid for U.S.-based Unocal Corp. because of political opposition.
``India and China, above all countries, have been the most aggressive in looking for assets overseas over the past few years,'' said Jon Thorn, who manages $180 million at India Capital Fund in Hong Kong. ``They have huge, increasing domestic demand for oil.''
PetroKazakhstan, which produced 151,102 barrels of oil a day in 2004, on June 27 said it had been approached by several prospective buyers. Since that date, the company's shares have risen 35 percent. Yesterday, they rose 4.3 percent to C$54.21 on the Toronto Stock Exchange.
The Indian and Chinese companies join Chevron Corp. and other producers in seeking acquisitions this year to bolster output and reserves. Soaring demand in Asia helped boost oil prices 42 percent in 12 months to a record $67.10 a barrel in New York on Aug. 12.
India, Mittal
Oil & Natural Gas, India's largest oil explorer, joined Mittal, controller of the world's biggest steelmaker, in the bid for PetroKazakhstan, the Indian company's Finance Director R.S. Sharma said in a phone interview today.
Oil & Natural Gas and Mittal, who owns Mittal Steel Co., July 23 said they will set up two companies to acquire oil exploration, refining, pipeline and trading assets overseas. Oil & Natural Gas will own 51 percent of both.
PetroKazakhstan, based in Calgary, Canada, said it has received acquisition proposals and is now assessing them. It won't identify the bidders, the value of the bids or how long it may take to evaluate the offers, spokesman Ihor Wasylkiw said yesterday in a telephone interview.
Goldman Sachs Group Inc. is advising PetroKazakhstan.
Lukoil Didn't Bid
Asel Tabynbayeva, a spokeswoman at Kazakhstan's state oil company, KazMunaiGas, said in a phone interview from Astana she isn't aware of any bids for PetroKazakhstan. OAO Lukoil, Russia's biggest oil producer, didn't bid for PetroKazakhstan, Vedomosti said, citing an unidentified person.
PetroChina's parent, China National Petroleum Corp., the nation's biggest oil company, offered to pay about $3.2 billion for PetroKazakhstan Inc., the New York Times reported, citing an unidentified person.
India's Oil & Natural Gas Corp. has submitted a bid of $3.6 billion for PetroKazakhstan, the newspaper said. China National Petroleum offered to pay a lower price than Oil & Natural Gas because China already has large oil investments in Kazakhstan and is planning to build a pipeline to carry oil to China, the newspaper said.
China and Kazakhstan agreed to develop closer ties on energy, trade and regional security, the China Daily newspaper reported July 5, citing a joint statement by the two countries' leaders in the Kazakhstan capital, Astana.
Hu, Nazarbayev
Chinese President Hu Jintao and Kazakhstan President Nursultan Nazarbayev will ``fully support'' the construction of an oil pipeline from Atasa in Kazakhstan to the Alataw Pass in northwestern Xinjiang Uygur Autonomous Region in China, and start a feasibility study on a gas pipeline linking the two countries, the newspaper said, citing the statement.
India has sought stakes in four oil and gas properties in Kazakhstan, as part an effort to secure supplies for Asia's third- largest oil consumer.
India's Oil Minister Mani Shankar Aiyar sought stakes in oil fields in Tengiz and Kashagan during his visit to Astana on Feb. 18. Aiyar also asked for stakes in properties in Kurmangazy and Darkhan regions, where oil or gas is yet to be discovered.
Reserves
The country's 39.6 billion barrels of oil reserves at the end of 2004 were 35 percent greater than the U.S. total, according to data compiled by BP Plc. Kazakhstan produced 1.3 million barrels of oil a day last year. State-owned KazMunaiGas produces about 25 percent of the nation's oil.
Chevron leads a venture, TOO Tengizchevroil, that is Kazakhstan's largest oil producer.
Oil & Natural Gas may spend as much as $25 billion on buying stakes in oil and gas fields abroad, Chairman Subir Raha said on March 24. The company has plans to acquire assets in Iran, Venezuela, Canada and Russia. It has investments of at least $3 billion committed to operations in Russia and Sudan.
The company has invited banks such as Citigroup Inc. and Deutsche Bank AG to make presentations to help raise as much as $3 billion in loans, Finance Director Sharma said on May 24.
``We keep looking for acquisitions and if we have one, we may need a large amount of money,'' Sharma said.
To contact the reporters on this story:
Manash Goswami in Singapore at mgoswami@bloomberg.net
Last Updated: August 16, 2005 05:26 EDT
Aug. 16 (Bloomberg) -- India's Oil & Natural Gas Corp. and steel billionaire Lakshmi Mittal bid for PetroKazakhstan Inc., which has a market value of $3.3 billion, competing with China for access to central Asia's fuel reserves.
The Indian company submitted a bid yesterday, Chairman Subir Raha said in a phone interview today. More than one offer was received, Calgary-based PetroKazakhstan said in a statement yesterday, without giving details. PetroChina Co.'s Hong Kong- based spokesman Mao Zefeng wouldn't comment on a report in the New York Times that the Chinese company's parent may have bid.
PetroKazakhstan accounts for about 12 percent of oil production in Kazakhstan, which has 3.3 percent of the world's reserves. India and China are trying to overcome stagnating output from their ageing fields by securing supplies overseas. China's Cnooc Ltd. this month withdrew an $18.5 billion bid for U.S.-based Unocal Corp. because of political opposition.
``India and China, above all countries, have been the most aggressive in looking for assets overseas over the past few years,'' said Jon Thorn, who manages $180 million at India Capital Fund in Hong Kong. ``They have huge, increasing domestic demand for oil.''
PetroKazakhstan, which produced 151,102 barrels of oil a day in 2004, on June 27 said it had been approached by several prospective buyers. Since that date, the company's shares have risen 35 percent. Yesterday, they rose 4.3 percent to C$54.21 on the Toronto Stock Exchange.
The Indian and Chinese companies join Chevron Corp. and other producers in seeking acquisitions this year to bolster output and reserves. Soaring demand in Asia helped boost oil prices 42 percent in 12 months to a record $67.10 a barrel in New York on Aug. 12.
India, Mittal
Oil & Natural Gas, India's largest oil explorer, joined Mittal, controller of the world's biggest steelmaker, in the bid for PetroKazakhstan, the Indian company's Finance Director R.S. Sharma said in a phone interview today.
Oil & Natural Gas and Mittal, who owns Mittal Steel Co., July 23 said they will set up two companies to acquire oil exploration, refining, pipeline and trading assets overseas. Oil & Natural Gas will own 51 percent of both.
PetroKazakhstan, based in Calgary, Canada, said it has received acquisition proposals and is now assessing them. It won't identify the bidders, the value of the bids or how long it may take to evaluate the offers, spokesman Ihor Wasylkiw said yesterday in a telephone interview.
Goldman Sachs Group Inc. is advising PetroKazakhstan.
Lukoil Didn't Bid
Asel Tabynbayeva, a spokeswoman at Kazakhstan's state oil company, KazMunaiGas, said in a phone interview from Astana she isn't aware of any bids for PetroKazakhstan. OAO Lukoil, Russia's biggest oil producer, didn't bid for PetroKazakhstan, Vedomosti said, citing an unidentified person.
PetroChina's parent, China National Petroleum Corp., the nation's biggest oil company, offered to pay about $3.2 billion for PetroKazakhstan Inc., the New York Times reported, citing an unidentified person.
India's Oil & Natural Gas Corp. has submitted a bid of $3.6 billion for PetroKazakhstan, the newspaper said. China National Petroleum offered to pay a lower price than Oil & Natural Gas because China already has large oil investments in Kazakhstan and is planning to build a pipeline to carry oil to China, the newspaper said.
China and Kazakhstan agreed to develop closer ties on energy, trade and regional security, the China Daily newspaper reported July 5, citing a joint statement by the two countries' leaders in the Kazakhstan capital, Astana.
Hu, Nazarbayev
Chinese President Hu Jintao and Kazakhstan President Nursultan Nazarbayev will ``fully support'' the construction of an oil pipeline from Atasa in Kazakhstan to the Alataw Pass in northwestern Xinjiang Uygur Autonomous Region in China, and start a feasibility study on a gas pipeline linking the two countries, the newspaper said, citing the statement.
India has sought stakes in four oil and gas properties in Kazakhstan, as part an effort to secure supplies for Asia's third- largest oil consumer.
India's Oil Minister Mani Shankar Aiyar sought stakes in oil fields in Tengiz and Kashagan during his visit to Astana on Feb. 18. Aiyar also asked for stakes in properties in Kurmangazy and Darkhan regions, where oil or gas is yet to be discovered.
Reserves
The country's 39.6 billion barrels of oil reserves at the end of 2004 were 35 percent greater than the U.S. total, according to data compiled by BP Plc. Kazakhstan produced 1.3 million barrels of oil a day last year. State-owned KazMunaiGas produces about 25 percent of the nation's oil.
Chevron leads a venture, TOO Tengizchevroil, that is Kazakhstan's largest oil producer.
Oil & Natural Gas may spend as much as $25 billion on buying stakes in oil and gas fields abroad, Chairman Subir Raha said on March 24. The company has plans to acquire assets in Iran, Venezuela, Canada and Russia. It has investments of at least $3 billion committed to operations in Russia and Sudan.
The company has invited banks such as Citigroup Inc. and Deutsche Bank AG to make presentations to help raise as much as $3 billion in loans, Finance Director Sharma said on May 24.
``We keep looking for acquisitions and if we have one, we may need a large amount of money,'' Sharma said.
To contact the reporters on this story:
Manash Goswami in Singapore at mgoswami@bloomberg.net
Last Updated: August 16, 2005 05:26 EDT
posted by Marcel at 5:24 AM
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