Sinopec International to purchase stake in the North Caspian Sea project

Sinopec International Petroleum Exploration and Production Corp. has reached an agreement with BG International Ltd. to purchase its remaining 1/12 interest in the North Caspian Sea project in Kazakhstan for $615 million.

Sinopec International Petroleum Exploration and Production Corp. has reached an agreement with BG International Ltd. to purchase its remaining 1/12 interest in the North Caspian Sea project in Kazakhstan for $615 million.

Sinopec Group believes that the acquisition of the Interest is a significant step in achieving its strategy of expanding its overseas oil and gas reserves.

"Sinopec Group has been actively looking for attractive oil and gas upstream acquisitions worldwide, and this transaction offers significant reserve and production growth potential," said Li Yizhong, president of Sinopec Group. "Sinopec Group is pleased to participate in this important oil venture in the Caspian Region, and this transaction demonstrates our commitment to expanding our reserves base overseas."

The North Caspian Sea project is owned and being developed by a consortium of global oil major partners including BG Group 16.7%, operator Eni-Agip 16. 7%, ExxonMobil 16.7%, RD-Shell 16.7%, TotalFinaElf 16.7%, ConocoPhilips 8.3%, and Inpex 8.3%. The North Caspian Sea project includes the Kashagan field, the Kalamkas discovery, and three other exploration prospects. The Kashagan field is one of the largest oil field in the world and represents the largest discovery in the past 30 years, with total recoverable reserves of 13 Bbbl.

03/11/03

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