LUKOIL Optimizes Overseas Hydrocarbon Asset Portfolio In Kazakhstan -Quick Facts

(RTTNews) - OAO LUKOIL (LUKOY.PK) has reached a purchase and sale agreement to sell its 50-percent stake in the Caspian Investment Resources Ltd. to China Petroleum & Chemical Corp. (SNPMF.OB, SNP), popularly known as Sinopec. The total price of the shares for sale total around $1.2 billion, subject to various adjustments as of the closing date.

Through a number of joint ventures, Caspian Investment Resources Ltd. owns various interests in four hydrocarbon-production projects in Kazakhstan. LUKOIL's share in commercial hydrocarbon production as part of the above projects equaled 10.2 million BOE in 2013.

This transaction is meant to optimize LUKOIL's overseas hydrocarbon asset portfolio. The transaction is expected to close completely before the end of 2014. At the same time, LUKOIL would continue to participate in Kazakhstan hydrocarbon-production projects such as Kumkol, Karachaganak and Tengiz. The company is also a member of the Caspian Pipeline Consortium.