Kazakhstan, Chinese Petroleum Discuss Oil for Investment Program

Kazakhstan’s President Nursultan Nazarbayev and China National Petroleum Corp. President Zhou Jiping discussed a program that would boost investment in the Central Asian nation’s energy sector in exchange for resources.

The program would provide “access to resources in exchange for investments in oil service and processing projects,” according to statement on on Kazakhstan’s presidential website. The countries share “dynamic relations” in the oil and gas sector, Nazarbayev said during a visit to China, in which he also met with Chinese President Xi Jinping.

Kazakh state-owned KazMunaiGaz National Co. and CNPC also signed an agreement on principles of cooperation to expand oil pipelines from Kazakhstan to China, according to the statement. The partners in Kashagan oilfield had been in “active commercial talks” to send crude from the Kazakhstan’s biggest oil venture to China, national pipeline operator KazTranOil said Oct. 2.

Kazakhstan is considering whether to use its right of first refusal to buy ConocoPhillips (COP)’s Kashagan stake or let India’s Oil & Natural Gas (ONGC) Corp. enter the project.

-- Editor: Jonathan Tirone

To contact the reporter on this story: Nariman Gizitdinov in Almaty at ngizitdinov@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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