China possible partner in Kashagan, offers triple price

China is ready to buy the ConocoPhillips stake at Kashagan for triple the initially declared price, a source in oil&gas told Trend.

It is as much as the Kazakhstan's debt to China, nearly $15 billion, the source familiar with the negotiation process said on condition of anonymity.

Possibly, the next week, early July, it will be officially announced that China will enter the Kashagan project by offering a higher price than India did.

Besides, rumors in the sector suggest that as an addition to the offer China may provide Kazakhstan with free access to one of its ports ashore the Pacific Ocean.

The source says two Western companies Shell and Eni that share the international consortium developing Kashagan, are now in talks on oil deliveries to Chinese market, namely to a refinery in Sichuan.

Discovered in 2000, Kashagan is the largest by reserves oil field found in the past 30 years. Its commercial resources are estimated between 9 and 13 billion barrels. 

Partners of the Kashagan project at the moment are Eni, Royal Dutch Shell, Exxon Mobil, Total and KazMunayGas, holding equal shares - 16.81% each, ConocoPhillips - 8.4% and Inpex - 7.55%.

The project is managed by joint North Caspian Operating Company B.V.